Following retail industry veterans Brett Blundy and Ray Itaoui’s offer for the company on Monday, discount retailer Best & Less appears to be getting a makeover that experts say could increase its appeal to younger customers.
After a difficult few years for the garment company, which debuted on the ASX in 2021, the pair’s offer of US $ 1.89 per share—roughly 5 per cent below where the stock finished on Friday—was nevertheless enough to pique the curiosity of the company’s key investors.
In the absence of a stronger offer, both fund manager Allegro, which owns 32.4 per cent of the company, and Bignor, a business connected to Best & Less executive chairman Jason Murray and which owns more than 8 per cent of the company, supported the sale.
The offer comes after a difficult two years for the retailer of low-cost apparel, whose stock is down more than 23 per cent since it debuted on the ASX.
The business, which operates more than 250 locations in Australia and New Zealand, was not treated well by Covid-19 retail regulations. Even when lockdowns were released, the market remained still unsteady, and the company announced in February that it was facing “near term economic headwinds” and that online sales had fallen by about 30 per cent.
Blundy is a non-executive director and a close to 16.5 per cent shareholder in Best & Less.
With operations dating back to 1965, retail experts said the bid for Best & Less was a nod to the great brand equity it offered, but there was room to update it to appeal to new customers.
