The receivers of Australian clothing company Colorado Group have put the business up for sale, Reuters reported. Colorado Group, which is owned by buyout shop Affinity Equity Partners, surrendered control of the business to its lenders last week. The lenders – which include Mizuho Corporate Bank, National Australia Bank and several hedge funds – are asking for expressions of interested by April 19, Reuters said. The lenders are owed roughly $411.5 million.
(Reuters) – The receivers of Australian clothing and footwear retailer Colorado Group have put the businesses up for sale, asking for expressions of interest by April 19.
Colorado Group, owned by Affinity Equity Partners, surrendered control of the business to its lenders last week. It was the second private-equity-owned store chain to do so in Australia in as many months after the collapse of bookstore owner REDGroup.
Colorado’s lenders, including Mizuho Corporate Bank , National Australia Bank and several hedge funds, are owed about A$400 million ($411.5 million).
Expressions of interest “may take the form of offers for the whole or part of the group,” receivers at accounting firm Ferrier Hodgson said in a statement on their web site. Under receivership, the stores can continue trading under the control of creditors.
The businesses, with brands including Colorado, JAG and Williams shoe stores, had combined sales of A$430 million in the last fiscal year from 434 stores in Australia and New Zealand.
Australian retailers were caught unprepared by the persistent weakness of consumer spending in the past six months, despite a solid economy and robust income growth.
Local media reports have said that retail magnate Solomon Lew, head of Premier Investments , might be interested in some of Colorado’s brands. (Reporting by Victoria Thieberger; Editing by Balazs Koranyi)