The PAS Group has refuted reports the company is under pressure to sever ties with private investors Propel Private Equity.
PAS CEO Eric Morris said rumours printed in The Australian Financial Review on February 17 that the company was gearing to part ways with Propel and list on the Australian Stock Exchange were “totally untrue”.
“It's not happening. In fact, if you had to think of it, why would a company go and list on the stock exchange in the most difficult trading environment? It wouldn't make practical sense,” Morris said.
He emphasised there was no time frame by which Propel Private Equity was looking to exit from the PAS Group.
“It's a fund which is absolutely pretty open-ended, so there's no big deal that they have to get out of it at any point in time. We'll make the decision what best suits the business.”
Propel Private Equity invested in the PAS Group in November 2004 to enable the business to undertake a “roll-up” of the Australian apparel industry. Since that time, PAS has acquired brands including Yarra Trail, Breakaway, Design Works, Fiorelli, Capelle, Review and Metalicus.
In an interview with Ragtrader in November 2010, Morris revealed the business was working to almost double its retail network from 130 to 250 stores over the next two and a half years, with womenswear brands Review and Metalicus particular growth targets.
In addition to its retail operations, the PAS Group also wholesales to the likes of Myer, David Jones, Target, Kmart and Farmers. The company is headquartered in Mount Waverley, Victoria.
Erin O'Loughlin