Canadian luxury retailer Kit and Ace to launch down under; Metcash mulls possible IPO for its $250 million automotive arm: Midday Roundup

Luxury womenswear label Kit and Ace, a Vancouver, BC-based venture by the wife and son of controversial Lululemon founder Chip Wilson, has revealed it will open its first Australian store by July.

Inside Retail reports Kit and Ace will open its doors on Melbourne’s Greville Street in the suburb of Prahran, as part of a global expansion that will see the retailer launch 50 stores globally by the end of the year.

Kit and Ace sells casual basics, made from high-end materials such as its patented Technical Cashmere and boasting Italian tailoring designs, with T-shirts retailing for around $80.

Shannon and JJ Wilson in Canada founded the business last year to fill what Kit and Ace’s website describes as “a void in the luxury apparel industry”.

The retailer is also ‘activity looking’ for Sydney and Brisbane sits, according to the reports.

Metcash mulls possible IPO for its $250 million automotive arm

Metcash is investigating a prospective initial public offering of its automotive business in a bid to improve its balance sheet and invest in its core businesses.

The Metcash Automotive Division recorded revenue of $250 million for the year ending 30 April 2015, and includes franchises such as Autobarn, Autopro, ABS and Midas.

“An IPO of the automotive business would create a separate ASX listing and allow Metcash to invest the proceeds in both its balance sheet and its core businesses,” the group said in a statement to the ASX.

“A further update will be provided at Metcash’s FY15 full year results announcement on 15 June 2015. Metcash cautions investors that there is no certainty that a transaction will result from the strategic review.”

Market ends week on a high

Local shares are up this morning following a strong lead by Wall St, off the back of positive US job data that saw the jobless rate decrease below projections.

“A surge in European shares and US markets returning to all-time highs pushed Australian stocks sharply higher this morning,” said Michael McCarthy, chief market strategist at CMC Markets.

“However, the Australia 200 index failed just below the important 5750 level, sparking a slide and increasing the likelihood of further selling this afternoon.”

The S&P/ASX200 benchmark was up 27.2 points, jumping 0.5% to 5723.8 points at 11.40am AEST. On Thursday, the Dow Jones closed 191.75 points higher, up 1.06% to 18,252.2 points.