L Capital-owned Jones the Grocer enters administration in Australia

According to an Australian Securities and Investments Commission filing, PKF Lawler Melbourne were appointed administrators on December 12. Jason Stone of PKF said the company's current position is due to "some issues with internal management," The Age reported.

"I think L Capital's looking to take a stronger sense of control over the business, and they want to use this administration as a formal process of restructuring the business and cleaning it up," he added.

Jones the Grocer was founded in 1996 and went into voluntary administration in 2002. Over the ensuing years efforts have been made to take the business overseas and this was part of L Capital's investment thesis when it bought a 50% interest in July 2012. It now has seven outlets in the United Arab Emirates, three in Singapore and two in New Zealand, as well as four in Australia.

Ravi Thakran, managing partner at L Capital Asia, told the Australian Financial Review recently that Jones the Grocer is "super-successful" in the Middle East and there are plans to open a store in New York.

The private equity firm, which is sponsored by French luxury goods conglomerate LVMH, has become a prolific investor in Australia. The acquisition of swimwear brand Seafolly earlier this month took its local deal count to four in just over three years, with boot maker R.M. Williams and sports apparel brand 2XU, as well as Jones the Grocer.

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• Topics
• Restructuring
• Australasia
• Consumer
• Australia
• Consumer
• Distress
• L Capital Asia