Speciality Fashion Group has confirmed that it received a $100 million cash offer for its City Chic and Autograph brands after receiving interest from a number of potential suitors.
The offer was placed by Anchorage Capital Partners and was announced on Tuesday afternoon with the bid being valid until April 6 and expressed as a binding offer for the two brands.
However, SFG's independent review committee has stated that there are a number of issues with the offer and does not believe that the agreement will be reached in the required time frame.
Speciality Fashion also announced that it has received a number of other confidential, non-binding indicative proposals for a change of control of the group or the acquisition of certain brands.
The announcement sparked a surge in the value of SFG shares which went up 22.5% to a closing value of 43c on Tuesday.
In their 1HFY18 preliminary results announcement, SFG highlighted City Chic's growth and the integration of the Autograph brand into the cost structure as a key improvement for the group.