Freedom Furniture eyes third sale attempt since 2019
Freedom Furniture, the Greenlit Brands-controlled retailer, is preparing for its third market test since 2019.
Transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Potential sale
Investors: N/A
The furniture and homewares chain is set to quietly gauge market interest later this year or early 2025. This move follows a four-year turnaround effort led by former Harvey Norman executive Blaine Callard, who overhauled the product range and relaunched the brand and website.
Callard is expected to lead the in-house sale preparations. The business will likely be presented with a turnover of $400 million and $10 million EBITDA, with EBIT at breakeven.
Potential buyers could include turnaround and distressed private equity firms like Anchorage Capital Partners and Allegro Funds. Allegro acquired Greenlit's Best & Less and Harris Scarfe in December 2019, while Anchorage recently purchased David Jones at a 75 per cent discount.
Greenlit Brands, established in 2018, owns Australian and New Zealand household retail brands and manufacturing operations formerly under Steinhoff International. The company has a history of divestments, including the sale of Plush to Nick Scali Furniture for $103 million in 2021.
Recent financial results show Greenlit Brands' revenue remained flat at $469.8 million for the year ending 1 October 2023, with underlying losses increasing to $31.1 million before restructuring expenses.
The retail sector has seen mixed results for private equity investments. While some firms continue to hold onto assets, others have faced challenges. The furniture category has shown signs of recovery, with a 3.2 per cent increase in August and an upward trend since May.
