Rumours fly on Forrest’s luxury interest

Woolworths Group says it is considering ‘all options’ to unlock value for luxury retailer David Jones after a tough spell during the pandemic, with Andrew Forrest a reported suitor.

The Australian's Margin Call column reported late on Wednesday that Mr Forrest's private investment entity Tattarang was a “contender” to purchase the department store after revealing that South African owner, Woolworths Group, had engaged Goldman Sachs to oversee a sale.

Mr Forrest's camp is remaining tight-lipped on divulging any details on the rumour however, as is David Jones’.

On paper, it would tie in with Tattarang’s broader investment mantra of keeping Australian businesses “in Australian hands”, a theme that has underpinned previous acquisitions including R.M Williams, Gaia Retreat & Spa and beef breeding station Balfour Downs.

In a presentation to analysts issued this week, Woolworths Group said unlocking value for David Jones was an area of focus for this financial year.

It said trading in Australia had been severely impacted by extended lockdowns during the period, reporting a 2.6 per cent decline in concession sales and operating profits of $83.7 million.

Though the group said sales had shown signs of improvement in the second half of FY22.

“Having successfully executed against our balance sheet and income statement priorities, we are now evaluating all possible options to unlocking value for WHL and its shareholders,” David Jones said in a presentation to analysts.

David Jones was founded 184 years ago in Sydney and has 45 stores in Australia, according to its website.