Smiggle, purveyor of A$63 school lunchboxes, considers spinoff
THE cult back-to-school accessoriser Smiggle, where a lunchbox can cost A$63 (S$55), may soon open up its books to investors.
Smiggle’s owner, Sydney-listed Premier Investments, said on Monday (Aug 21) it’s considering hiving off the brand as part of a corporate shakeup. The reorganisation could see Smiggle, which operates more than 300 stores from Australia and South-east Asia to Europe, stand alone as a listed entity.
Premier is looking to unlock value in its faster-growing businesses following a stock-price slump this year. Smiggle has exploded in popularity since starting out as a single shop two decades ago.
Fiscal first-half sales at Smiggle surged 30 per cent to A$190.7 million, according to Premier filings, though the company doesn’t disclose the unit’s earnings or profitability.
The brand turns humble schoolday essentials such as backpacks and pencil cases into must-have items by emblazoning them with contemporary cartoon or movie characters. A Barbie-branded trolley bag, for example, goes for A$105 – more than the price of some Sydney to Melbourne flights.
Premier’s review will also focus on two clothing businesses within the group – sleepware outlet Peter Alexander and Apparel Brands. Premier shares closed up 12 per cent in Sydney, valuing the group at A$3.9 billion.
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As it announced the review, Premier also said chief executive officer Richard Murray is standing down.
Smiggle operates stores in Australia, New Zealand, Singapore, Malaysia, the UK and Ireland. Premier said the brand is exploring expansion in existing and new markets.
The company will review “Premier’s corporate, operating and capital structure, including dividend policies and a separation of the group into two or more distinct entities by way of demerger”, it said.
Bankers at UBS Group are advising Premier. BLOOMBERG
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