SYDNEY: Specialty Fashion Group has sold its womenswear brand Queenspark to private investors for $5.5 million.
The retail group announced that the sale included the management of the brand. It reported that $4 million was paid upon completion of the sale, with a deferred consideration of $1.5 million to be paid over a period of three years.
Specialty Fashion Group chief executive officer Gary Perlstein said over the past three years since the group purchased the brand, it has increased its store network from seven to 26 nationally.
“Howvever the brand has not met all our internal growth expectations, and we believe that the capital released from the sale will generate better returns invested elsewhere,” he said.
Specialty Fashion Group recently acquired a ten year license to operate the La Senza lingerie label across Australia and New Zealand.
The group also operates Millers, Crossroads, City Chic and Autograph. It had 837 stores across its portfolio at the end of the 2009/10 financial year. It reported a net profit of 35 per cent for the 2009/10 financial year to $30.4 million.
SOLD: Private investors step in.
