Flogged Greenlit Attempts Come Back With $1 Billion Offer
Greenlit Brands, who reported a near half million annual loss yesterday, is understood to be in the works for a public offering next year.
The offer will be subject to improving trading conditions and company performance, with sources revealing that Greenlit Brand’s advisors, including Monash Private Capital and Rothschild, are seeking out parties in the market for their thoughts on the offering, believed to be worth near $1 billion.
But it’s believed a float may be some way off after the company reported a flogging in the year up to September, with a $288.5 million loss.
Discontinued operations that included the general merchandise division are said to be responsible for $125 million losses.
Greenlit sold off its general merchandise division, including Best&Less and the now embattled department store chain Harris Scarfe, last December to Allegro Funds.
The group’s parent company, Steinhoff International, has also come under hard times after being investigated for corruption early last year and faced near collapse in the midst of a weak economy and challenging trading conditions.
Sources in the market have revealed that one of the most recognisable brands in its division – Freedom Furniture – has underperformed, according to The Australian.
Greenlit Brands is now focusing on paying off its debt believed to be around $50 million and may sell off non-retail assets to invest capital into the business and reduce borrowings.
Speculation has suggested that Woolworths South Africa may have been considering listing some of Greenlit Brands’ parts, including brands such as Witchery, Mimco and Country Road.