Would need to see the numbers
Yes the vendors would have to be realistic with pricing to get an IPO away in this market.
However I think they've been encouraged by good performance cf. other retailers. GSJBWere released a communication last month on 14 July from which I quote;
"The board of Kathmandu has forecast a significant 20% increase in operating performance during FY09(July), to $42m EBITDA. Given the strength of the recent trading and the impact of a range of cost and pricing initiatives it is likely that Kathmandu's final result will be ahead of this budget, which will be an excellent result given the highly volatile and difficult retail environment.
Kathmandu Float Expected By Christmas
Kathmandu Float Expected By Christmas
Thursday, 8 October 2009 - 10:03am
Wellington, Oct 8 NZPA - A float of clothing retailer Kathmandu is reportedly expected before Christmas.
The Independent weekly business newspaper today said it understood Kathmandu's owners, Goldman Sachs JBWere and Australia's Quadrant Private Equity, were likely to sell at least 75 percent of the firm. They were seeking a valuation of about $450 million.
Lead managers of the float -- Goldman Sachs JBWere and Macquarie -- were sounding out investors on demand and pricing in this country and Australia.
At least three-quarters of the shares were likely to be sold in Australia where listed companies typically attracted higher valuations and shares were being offered extensively through retail investment networks, The Independent said.
Kathmandu has 84 stores, of which 45 are in Australia and 32 in this country.
NZPA WGT mjd nb
WHEN the smoke clears for Macduffy..
Quote:
Originally Posted by
macduffy
There's some pretty forthright views being put forward but we haven't seen a prospectus yet.
Or have I missed something?
:cool:
BET now you wont BUY ... THIS type of company is being flogged at the top price for the current owners not for Johnie come latelys and on top we just need another clothing SHOP
We already know what the business is.
The only thing we don't know is the price.
We know what the business is.
Kathmandu was based on an image of all the young trendies doing their OE, and high-tech advanced and good-looking outdoor wear for the rugged climates that wasn't cutesy ski-bunny wear.
More recently, for a lot of people, it's those same quality clothes for use by past OE-ers who now live in the city, and now available at 50% discount when you catch the never-ending sales. (Of course, once in the shop, you sometimes find the thing you want is not on sale. You either buy it...or you go down the road to para rubber or hallensteins or posti-plus)
The question is around the potential for the brand to transition from rugged/quality/trendy to discount clothing.
There must be other clothing brands that have done this