14 May How Specialty Fashion won a plus-size market boost
Source: The Australian Financial Review.
For a while there it seemed like anyone who mentioned Speciality Fashion Group was legally required to use the word “struggling” before its name.
But after Monday’s deal, which will see the group sell most of itself to fellow women’s fashion retailer Noni B, the days of hearing about the “struggling Speciality Fashion” may be all but over.
It’s just two months since concerned investors, led most publicly by Sandon Capital’s Gabriel Radzyminski, intervened in the board’s strategic review process and urged it not to sell Speciality’s assets too cheaply.
Sandon was particularly concerned the board would be tempted by offers of around $100 million for its booming plus-size women’s fashion chain, City Chic. Sandon said the board should even consider hitting beaten-down investors with a capital raising before selling any assets.
The board, led by Anne McDonald, has heeded that advice – with a twist.