Big changes at billionaire Christo Wiese’s Brait

Brait is seeking to sell its UK apparel chain in the next 12 months as the South African investment holding company backed by billionaire Christo Wiese winds down its portfolio to repay debt and return cash to investors. 

Talks with potential buyers of New Look are progressing as the retailer, which has about 400 stores, focuses on growing its online sales and reducing the number of outlets from which it sells dresses and jewellery across the UK, Brait CEO Peter Hayward-Butt said in an interview Wednesday.

The digital platform, along with some profitable stores, is “the package that we would like to sell,” he said.

Brait first announced its plan to hive off assets, including New Look and its Virgin Active fitness chain, in late 2019 to revamp its finances.

Still, the process of selling New Look has been drawn out. The clothing retailer has been through a UK court process that allows insolvent firms to reach agreements with creditors and cut both costs and debt.

That improved Brait’s options for the chain.

The buyer will likely be either another UK fashion retailer that can extract efficiencies or a new entrant that’s looking to expand in the nation, Hayward-Butt said.

The company’s plan to list Virgin Active in the next 18 months remains on track, he added. 

Brait sold part of its stake in Premier in 2023. Shares in the South African maker of staples such as Blue Ribbon bread and Snowflake flour have more than doubled since they started trading in Johannesburg, making them one of the 10 best performers on the FTSE/JSE Africa All Shares Index in that period.