Lorna Jane is reportedly on the market for $500 million.
Private equity firm Champ Ventures is said to have shelved plans to publicly float its shares in the activewear business, after taking a stake in 2010.
The company has declined to comment on a potential sale to media outlets - but here is the story so far.
1. Lorna Jane has humble foundations
Lorna Jane opened her first retail store in 1990 in Brisbane's CBD, with her husband and business partner Bill Clarkson. Clarkson had become frustrated by the lack of activewear options available for women while working as a fitness instructor in North Queensland. She later quit her job as a dental therapist, moved back to Brisbane and began designing full-time in the lead up to her store opening.
2. Champ Ventures has a significant minority stake
In April 2010, private equity firm Champ Ventures took a significant minority stake in the business, partnering with the founders to help grow its retail footprint. It is understood Champ currently owns 40 per cent of the company.
3. The backing proved fruitful
Lorna Jane continued to expand across Australia after the backing, opening its first store in the United States in 2012. The brand currently has 23 stores in the market, with retail store sales sitting at $5.4 million for the 2013 financial year, up from $246,000 a year earlier. The company credits a strong social media profile for its success both domestically and internationally, with close to one million likes on Facebook.
4. It's a ripper success
While the company is not publicly listed, corporate filings reveal profit for fiscal 2013 hit $19.6 million. The company, which operates close to 150 stores nationally, recorded $12.9 million in profits in 2012. Revenues rose some 30 per cent to $138 million, with like-for-like sales in Australia growing 10.9 per cent. Online retail sales and direct-to-consumer sales also grew 75.7 per cent on the previous year to $10.3 million.
5. It's tackling new segments
Earlier this year, Lorna Jane secured an exclusive agreement with department store David Jones. The agreement saw her mainline and newly created 'Uniquely' by Lorna Jane available in CBD stores nationally. The move marked the first department store venture for Lorna Jane, coinciding with its 25th anniversary.
6. Lorna Jane has serious awards
Lorna Jane lists the following as career highlights: winning numerous RAQ Fashion Design Awards, receiving the 2011 AMP Capital, BRW Award for Australia’s Outstanding Retailer of the Year, publishing her books Move, Nourish, Believe: The Fit Woman’s Secret Revealed in 2011 and MORE of the Fit Woman’s Secrets in 2013. Lorna’s first cookbook is due for release in 2014.
