TFG, Truworths look offshore for growth
SA apparel retailers diversify revenue streams, developed market foothold offers scale
TFG, the retailer that owns Foschini, @Home and Totalsports is in talks to acquire British womenswear brand Hobbs, a UK press report says. Hobbs, a high-end fashion retailer, was put up for sale by its private-equity owner 3i in January for £80m, according to The Times of London. Continued political uncertainty and SA’s credit downgrades have lent urgency to the country’s apparel retailers in diversifying their revenue streams with hard currency to reduce dependence on the local market, which is in pronounced economic slowdown. TFG has been looking for international acquisitions and has appointed a dedicated head of mergers and acquisitions in 2016. The newspaper quoted sources as saying that Truworths, another JSE-listed retailer, was the frontrunner in the race to buy struggling chains Oasis, Coast and Warehouse, all of which were owned by failed Icelandic bank Kaupthing. It said TFG was "unwilling to fork out the full asking price", and that 3i, which had hired NM Rothschild to f...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.