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This was published 21 years ago
Just Jeans has acquired the Melbourne-based Portmans chain for an undisclosed amount, continuing the rationalisation of Australia's specialty clothing stores.
Portmans, owned by brothers Barry and Norman Bloom, has 86 stores spread across Australia and New Zealand, turnover of about $100 million and 1000 staff.
The business sells fashion wear at value prices aimed at women aged 22 to 26.
The purchase adds another plank to the Just Jeans specialty retail platform, which now includes four major labels: Just Jeans, Jay Jays, Jacqui E and Portmans.
This makes Just Jeans the biggest specialty retail chain in Australia, with turnover of $520 million, 620 stores across Australasia and more than 4000 employees.
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Just Jeans managing director Howard McDonald said Portmans would fit well into the group's portfolio.
"Portmans has a unique position in the women's apparel market in Australia and the acquisition will strengthen our position as Australia's leading specialty apparel retailer," Mr McDonald said.
Portmans' existing operations and staff would be folded into Just Jeans without redundancies, he said. The Bloom brothers, whose parents founded the company in 1946 with a store in Chapel Street, Prahran, would stay on "as long as required to help with the integration", Mr McDonald said.
Just Jeans' IT system would be rolled into Portmans and the store network expanded, he said.
"They have just gone into New Zealand and we've got a big chain there," he said. "We can integrate it with our infrastructure and IT. I can see it expanding to 125 stores without any problems, and then we'd stop and debate the issue again. That might take three years."
Just Jeans was privatised last August for $108 million, with founder Craig Kimberley receiving $64 million for his stake in the business he formed 30 years ago.
The privatisation was underwritten by the Catalyst private equity group, which now owns 87 per cent. The rest is in the hands of Mr McDonald and executives.
Catalyst will finance the Portmans purchase through debt and equity, with the Just Jeans management retaining its holding at current levels.
The Portmans purchase was completed in just six weeks, with Just Jeans doing quick due diligence. Portmans is believed to have been under offer several times in the past few years. New Zealand retailer David Wright is believed to have been one of the interested parties in recent times.
Mr McDonald said the key to Just Jeans' success in the apparel business was speed of response through a highly developed IT and stock-control system that would be rolled into Portmans.
"You need outstanding logistics to keep four chains `fashion right'," he said. "Our supply chain is the best in the world and each store is a profit centre that is polled nightly on sales and profits. That gives us innovative research every day."
Catalyst managing director Gordon Windeyer said the investment company was in expansion mode and had spent $1.1 billion on acquisitions last year. That included the $730 purchase of the Pacific Brands manufacturing and wholesale business from Pacific Dunlop. In that context, the Portmans deal was "small", he said.
The Portmans sale is another step in the rationalisation of the specialty clothing sector. In the past two years, the Besen family of Sussan has bought Sportsgirl and Saba, and several labels have been swallowed by Sydney's Millers Retail.
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