NATIONAL: Retail Apparel Group (RAG) has confirmed it is considering a public offering as its private equity partnership nears its end.
RAG CEO Gary Novis revealed the company appointed advisors in December 2009 to assist with the company’s impending ownership restructure. Champ Ventures, a private equity firm that currently owns 45 per cent of RAG, is expected to withdraw from the company in coming months.
Novis stressed there was no established timeline for the ownership change. “Champ as our partner has no rush or urgency to end any relationship. They’re very happy with their investment,” Novis said.
Novis confirmed the advisory group was helping RAG formulate multiple exit strategies for the private equity firm.
“We’ve considered various options, one being an IPO,” he said.
Champ Ventures first invested in RAG, previously known as Tarocash Enterprises, in mid-2004. Since that time RAG has opened over 100 stores under its Tarocash and yd menswear brands, as well as launching the Connor brand in 2007.
Novis confirmed RAG would continue to open stores across all brands in 2010. “We are opening stores on an average across the three brands of about 50 a year,” he said.
Novis said RAG was particularly happy with Connor’s retail performance, with the menswear brand enjoying “fantastic” like-for-like growth. Connor caters to men aged 25 to 39, with just over 20 stores across Australia.
Retail store numbers are significantly higher for the Tarocash and yd brands, with a strong presence across both Australia and New Zealand.
Erin O’Loughlin