Greenlit Brands mulls over sale of Freedom Furniture

Greenlit Brands has appointed advisers to facilitate the sale of its iconic homeware business, Freedom Furniture. This follows Greenlit's completion of a significant turnaround strategy for Freedom, overseen by former Harvey Norman executive Blaine Callard.

Freedom Furniture, under Callard’s leadership since 2019, has returned to profitability. It now generates $410 million in annual revenue and earnings before interest, tax, depreciation, and amortisation (EBITDA) of $20 million. Freedom operates 60 stores, capturing around 2.5 per cent of Australia's furniture and homeware retail market.

Previous sale attempts attracted interest from turnaround specialists such as Anchorage Capital Partners and Allegro Funds. Anchorage previously acquired David Jones for $92.5 million, while Allegro bought Best & Less and Harris Scarfe from Greenlit Brands in 2019.

Freedom Furniture’s successful transformation under Callard is anticipated to be central to Jarden’s pitch. Potential buyers are expected to include both domestic and international strategic investors and financial sponsors. If a sale is finalised, Greenlit Brands will retain only Fantastic Furniture in its portfolio.

Greenlit Brands was formed in 2018 following accounting irregularities involving its former parent, Steinhoff International. Subsequently, Greenlit’s Australian operations secured senior debt from major banks ANZ, NAB and Deutsche Bank.

Originally, Greenlit’s brands included Freedom Furniture, Fantastic Furniture, Plush, Snooze, Best & Less, Harris Scarfe and Postie. Plush was sold to ASX-listed Nick Scali in 2021, and Snooze to billionaire Larry Kestleman’s Queens Lane Capital in 2023. Best & Less, Harris Scarfe and Postie were acquired by Allegro Funds.

Freedom Furniture previously explored sales twice without success. Fantastic Furniture was briefly considered for an IPO in 2020, but this did not eventuate.

Freedom Furniture’s current sale attempt coincides with heightened activity in consumer retail sector divestments. Other retailers recently seeking buyers include office supplier Winc, Real Pet Food Company, and Krispy Kreme’s Australian and New Zealand business. Retailers Mecca and Country Road are also seen as potential upcoming candidates for divestment.