All go as Colorado steps up NZ plans

By SIMON HENDERY

A Brisbane-based outdoor clothing and footwear retailer chasing the Australasian rights for one of the world's hottest fashion labels is also planning to open stores in Auckland.

Colorado Group, which runs more than 330 shops in Australia, said yesterday that it would open a 260 sq m "Colorado Adventurewear" outlet at the new Botany Downs shopping centre.

Colorado already has a store in Wellington, and is interested in expanding to Auckland and Christchurch, managing director Rowan Webb says.

In Australia, the listed company is in a takeover bid for retailer Palmer Corporation, owner of the Jag clothing brand and the Australasian rights for New York-based label Donna Karan International.

Colorado's offer for 100 per cent of Palmer totalling $A14 million ($17.4 million) is expected to be posted to shareholders next week.

Palmer executive chairman John O'Brien and his wife, Gwennyth, the company's finance director, have so far agreed to sell a 19.9 per cent share of the company.

They own a total stake of just under 49 per cent and are expected to sell their entire holding if a higher offer is not forthcoming.

Palmer's pre-tax profit from its 27 stores was cut in half last year to $A1.2 million, prompting a restructuring by Mr O'Brien which involved shedding 50 head office jobs.

Jag and Donna Karan's DKNY jeans line are wholesaled in New Zealand through Palmer.

Colorado runs 65 Adventurewear shops in Australia, along with 270 Mathers Shoes and Williams the Shoeman stores.

The Botany Downs store is due to open this year, along with about 130 other retailers, as part of stage two of the $180 million shopping centre development between Pakuranga and Manukau.

A date for the opening has yet to be finalised by the developers.

Mr Webb said that while Colorado was keen to open more stores in Auckland and Christchurch, it had not set a timetable. The Adventurewear brand had achieved year-on-year sales growth in excess of 20 per cent over the past three years, he said. "In terms of competitors like Timberland and Kathmandu, there are significant price differences. There is the question of affordability, and I believe we can offer a high quality and a complete outdoor wardrobe at a better price."