Smiggle, Peter Alexander slated to become standalone companies in 2025
Stationery brand Smiggle and sleepwear business Peter Alexander will be spun off from Premier Investments’ portfolio of brands next year to become ASX-listed retailers in their own right and turbocharge international expansion plans.
Premier Investments, which also operates clothing brands Just Jeans, Jay Jays, Dotti and more, announced in August last year that it was restructuring the business after the surprise exit of then-CEO Richard Murray and launched a strategic review into the potential spin-off of Smiggle and Peter Alexander.
Premier Investments intends to spin off Smiggle in January next year.Credit: Louie Douvis
“A number of people in the market are predicting the parts are worth more than the whole, and if that’s the case, we have to act in the best interest of shareholders,” chairman and billionaire retail veteran Solomon Lew told reporters on Tuesday.
The spin-offs would mean each business would have a board of directors and management team singularly focused on the standalone brand, he added. “In the event that the business does get spun out, it will have a separate board, it will operate independently, and in some instances, will be able to move a lot faster,” Lew said. “There’s a lot of effort going into international growth.”
Smiggle is set to be demerged by the end of January next year, while a similar spin-off for Peter Alexander is being explored for some time in 2025.
Smiggle’s global sales dipped 3.6 per cent to $183.9 million in the first half of the 2024 fiscal year as families juggled cost of living pressures.
Premier intends to grow the brand’s presence through store expansion, including a new wholesale partnership that has already resulted in seven Smiggle stores opening across the United Arab Emirates and Qatar. More than 10 new stores will be rolled out by the end of June.
Meanwhile, Peter Alexander’s sales shot up 6.7 per cent to $279.3 million. In the first half of the 2024 financial year, six new stores were opened, four stores were expanded or relocated, and a further three are set to open between now and July.
The sleepwear brand has announced plans to launch into the United Kingdom later this year, with 10 store site opportunities identified and a dedicated UK website in the works. Two stores will be opened in time for this year’s Christmas period.
