Premier tempts Just Group with gloomy forecast

AUSTRALIA: Premier tempts Just Group with gloomy forecast

By just-style.com | 30 April 2008

Premier Investments, the firm trying to take over Australian retailer Just Group for A$900m (US$832.7m), has been forced to file a supplementary bidder's statement to clarify statements made by its chairman on the current state of the country's retail climate.

Earlier this month, Premier chariman Solomon Lew said sales in the specialty apparel market could have fallen 5% during March, and that a number of apparel retailers conducted clearance sales this month.

In a statement on the Australian Stock Exchange, the company added: "Premier believes it can bring substantial value to Just through sector skills and experience through working with Just's management team to enhance the company's long-term strategic direction."

However, Just Group has urged its shareholders to take no action on the bid until its formal response to the bid is released next month.

Dr Ian Pollard, Just Group chairman, said Premier's statement "is still hedged with generalities and speculation."

Retail guru Lew, a former chairman of Coles Myer, already has a 23.6% stake in Just Group through an investment vehicle called Metrepark.

Just Group's fashion brands include Peter Alexander, Dotti, Just Jeans and Portmans.

Sectors: Apparel, Finance, Retail

Companies: Just Group, Coles Myer, Myer