Best & Less Group
An iconic Australian retail brand
Snapshot
Type of Investment
Corporate Carveout
Industry
Retail
Initial Investment
November 2019
Fund
Allegro Fund III
Investment Status
Exited
Website
In 2019, Allegro completed a complex corporate carveout from the Steinhoff Group to acquire the Best & Less Group (BLG), which included the four underperforming retail brands Best & Less, Postie, Harris Scarfe and Debenhams. After separating the four brands into standalone businesses, Allegro divested Harris Scarfe and Debenhams to concentrate on restructuring BLG. The transformation involved a strategic pivot to an omni-channel, customer-focused retailer specialising in baby and kids' apparel, supported by substantial investments in digital capabilities and operational improvements. The successful execution of this plan significantly improved profitability and capabilities, culminating in a successful ASX listing in June 2021 where Allegro sold a majority stake. After initially retaining a 43% share, Allegro made a full exit in June 2023, leaving BLG in a much stronger position.