Best & Less Group (BLG) is a leading value apparel specialty retailer with an omnichannel sales network comprising 248 physical stores and an online platform across its two trusted brands: Best & Less (in Australia) and Postie (in New Zealand). Allegro acquired BLG in 2019 through its purchase of Greenlit Brands General Merchandise (GBGM), a complex corporate carveout of four retail brands – Best & Less, Postie, Harris Scarfe, and Debenhams – from the Steinhoff Group (Steinhoff). BLG was the fifth investment in Allegro Fund III.
The investment was a proprietary deal which involved Allegro partnering with Jason Murray, the former Managing Director of Pepkor SEA, which was a group that encompassed GBGM, to provide a solution for Steinhoff. The deal was highly complex: Steinhoff had deemed GBGM to be a non-core asset, there were multiple stakeholders in the transaction with differing priorities, and the GBGM brands were underperforming and facing into retail sector headwinds. Given these challenges, Steinhoff wanted a solution that provided a clean, 100% sale of GBGM, and a partner that could act with speed and certainty. Allegro was well positioned to provide this solution given our specialised capability in business transformation, our strong track record and experience in retail and our structuring and restructuring capability.