Foschini in talks to buy UK company – worth over R1 billion: report

The Foschini Group (TFG) is reportedly interested in acquiring UK retailer White Stuff.

As reported by Sky News, TFG is in advanced talks to acquire White Stuff and invest in its future expansion.

Although the price was under discussion, the British news service said analysts believe the company is worth 50 million pounds (R1.1 billion). It is believed that a deal could be struck within days.

However, it should be noted that no formal agreement has been reached, with several parties interested in acquiring White Stuff over the last few months.

White Stuff is a fashion and lifestyle brand that sells women’s, men’s, and children’s clothing, homeware, and accessories at over 100 stores in the UK and employs over 1,000 staff members.

This would not be Foschini’s first foray into the United Kingdom, with the group, through its British subsidiary, already owning retailers Whistles, Phase Eight, Hobbs and Damsel in a Dress.

In its full-year financial results for the year ended 31 March 2024, the group said that TFG London contributed 13% of group turnover.

In those results, the group said it continued to experience elevated inflation and interest rates, putting the UK consumer under extreme pressure.

That said, it could still increase its retail turnover by 10.4% to R7.6 billion (in rand terms).

TFG owns several well-known retailers in South Africa, such as @home, Coricraft, Jet, Markham, and Totalsports.

The other way as well

The group also looks set to bring successful UK brands to South Africa, with TFG also set to bring sports retailer JD Sports to South Africa.

TFG signed a franchise agreement with JD Sports to become its retail partner in South Africa in March 2024. The group said that it hopes to bring the retailer to South African shores by late 2024.

JD Sports sells products from recognised brands, such as Nike, Adidas, and Puma, as well as its own private labels, including Pink Soda and Supply & Demand.

TFG plans to open 40 JD stores in South Africa over the next five years.

‘We are excited to be the exclusive partner of JD Sports in South Africa. This partnership allows TFG to bring a new compelling international sports fashion offering to the South African market,” said Anthony Thunstrom, TFG CEO, in March.

“This further bolsters our existing Sports positioning, with our Sportscene, Totalsports and Sneaker Factory stores already being the destinations of choice for athletic and leisure sports apparel.”

Further moves into the sneaker retail space may prove risky, given the liquidations of popular retailers Cross Trainer and Drip Footwear.

Sports retailer Frame Leisure Trading, which owns Cross Trainer and XTrend, is set to undergo liqudiation proceedings at the Pretoria High Court next wee after its business rescue practioners believed that there was no chance of the company being saved.

The sports retailer was severely hit by the COVID-19 pandemic, July 2021 unrest, and heavy rental escalations, whilst the drop in consumer spending and increased operational costs meant the group could not keep up with all debt repayments.

That said, consortium Connecting Creativity told BusinessTech that it had made an offer to purchase the brand.

The business rescue practitioners, George Nell and Gideon Slabbert, said that it could accept an offer and take legal and financial advice on whether a revised business rescue plan can be published. This would see the liquidation application withdrawn.

Retailer Drip Footwear was less lucky. At the beginning of September, the Johannesburg High Court ordered that the company be liquidated.

The retailer, established in 2019, struggled to pay back R20 million for advertising services, leading to its liquidation.

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