Spotlight entrepreneurs looking for exit
Tuesday, January 29, 2008/
The owners of fabric and homewares retailer Spotlight, wealthy brothers Morry Fraid, 55, and Ruben Fried, 61, are reportedly planning to step back from the business.
Spotlight, which runs 108 stores in Australia and New Zealand, is apparently examining a potential $800 million sale of the entire operations or a structure where it would offload a half share.
The Australian Financial Review reports that several investment banks have been invited to pitch to the company for options, but managing director Stephen Carter refused to confirm the reports.
The Fraid brothers have a combined wealth of $403 million, according to the latest issue of the BRW Rich 200. The chain began as a market stall for fabric at Queen Victoria Market. The brothers also founded the nine-store Anaconda chain of outdoor and adventure gear retailers.
Spotlight is expanding overseas. The first Hong Kong store opened in June last year and there are plans to open a store in China. The chain turns over about $750 million a year.