Andrew Forrest’s Tattarang understood to be in talks with David Jones owner about possible sale

Iron ore magnate Andrew Forrest is understood to be eyeing up a purchase of Woolworth Holdings’ portfolio of David Jones stores.

The South African company, which also owns Country Road, said in a presentation to analysts that “all options” for the future of the struggling business were on the table.

“Having successfully executed against our balance sheet and income statement priorities, we are now evaluating all possible options to unlocking value for Woolworths and its shareholders,” it said.

Mr Forrest’s private investment company Tattarang is understood to have registered its interest in doing a deal for David Jones, holding very early discussions with Goldman Sachs, which has been appointed to run the sale process, but it has made no direct approach to Woolworths Holdings.

But reports in other media that Mr Forrest had been in contact with the former chief executive of the department store chain, Mark McInnes, about the sale are believed to be incorrect.

Mr Forrest, the founder of Fortescue Metals Group who will soon pocket a cool $1.37 billion dividend cheque from the miner, is believed to want to revive the brand under Australian ownership — a strategy that has proved a success following his purchase of RM Williams in late 2020.

David Jones has more than 3600 employee and 44 stores across Australia, including six in WA. It reported turnover and concessions sales of $1.95 billion last financial year, down from $2.06b the year before.

Woolworths Holdings took over the 182-year-old business in 2014 in a deal worth $2.2b.

It is believed two other private equity buyers are said to be interested in doing a deal.

Mr Forrest’s Tattarang has ramped up its range of investments in recent years and now holds a 10 per cent stake in Bega Cheese, a 19.9 per cent share of BWX, the company behind the Sukin, Andalou, Mineral Fusion USPA and Nourished Life skin care and beauty brands, and is now the majority shareholder in WA-based shipbuilder Austal.

The company has also launched an international design competition to consider how to renovate or rebuild Perth’s Carillon Arcade, which it bought last week for $80 million.

It is also backing a new $250m Perth-based venture capital fund targeting start-ups in the medical technology sector.

Tenmile has former Roche Group executive Steve Burnell at its helm and aims to boost the number of firms making it to scale — a constant battle for Australian health start-ups with a lack of investors who deeply understand success in the sector is often a long burn.