Cash-strapped clothing and footwear retailer Deacons (East Africa) PLC (Under Administration) has announced Expression of Interest to sell its business and assets in whole or in part in a public notice.
“This invitation (expression of interest) is to potential applicants for the purchase of the business and assets domiciled at the stores – 4U2 (Sarit Center), Adidas (Sarit Center and Two Rivers), Bossini (Two Rivers, Yaya Center, Village Market, Garden City and Rwanda), and FNF (Sarit Center) via competitive bidding process.”
This follows the approval of the Administrators’ proposal by the creditors on January 2019 to undertake a competitive and transparent transaction process aimed at identifying strategic or financial investor (s) with a view to achieving either a recapitalisation of the company through an injection of equity and or restructure of its debt obligations, or a sale of all or some of the stores of the company.
Dyer and Blair Investment Bank has been appointed as the Transaction Advisor.
Those interested have until Friday 31 May 2019, 4:00 pm to submit their written EOI to the Dyer and Blair ‘Indicating whether the business and assets are being acquired either wholly or in part.’
Dyer and Blair will shortlist prospective bidders who will be provided with a detailed information Memorandum (IM) of the assets and an opportunity to view the assets and subsequently submit financial offers read the notice.
The sale is subject to regulatory approvals.
In 2017, the company posted a net loss after tax of KSh 180.4 million for its first half of 2017 from KSh 52.6 million compared to 2016.
The same year, it sold the Mr Price (MRP) franchise to the Mr Price Group Limited with its net sales decreasing by 20 percent for the remaining business.
Deacons Plc now operates all the 11 Mr. Price Home and Mr. Price apparel stores in Kenya.
Deacons have franchises for a number of South African brands, including Truworths, Woolworths, Identity, Sheet Street, 4u2, BabyShop, Angelo, Reebok, Addidas, Lifeftness, and Bossini.
The fashion retailer listed at the Nairobi Securities Exchange (NSE) in August 2016 listing 123,558,228 shares at Ksh 15 per share by way of introduction on the AIM segment of the exchange.
Deacons opened its first store in 1958 when it was the franchise holder for the Marks & Spencer brand.
The fashion retailer on 23 November 2018 resolved to be placed under administration due to financial difficulties.