Noni B falls to another loss


noni bStruggling women’s fashion retailer, Noni B, expects to make a loss in the current financial year, its third in as many years.

Noni B CEO, Scott Evans, told the company’s annual general meeting Noni B would have a clearer idea of the magnitude of the loss after the critical Christmas period.

“Trading remains challenging and we expect to report continued trading losses for both the first half and the full year,” he said.

The company made a $7.8 million loss in the 2013/14 year, as sales dropped 7.7 per cent.

Evans, who joined the company in November amid a takeover by private equity firm, Alceon Group, said Noni B had made a mistake cutting prices during the global financial crisis, and would now reposition itself as a quality fashion brand.

“We want our customers to buy Noni B and Liz Jordan products for their quality and style, and for emotional reasons, not simply price,” he said.

Noni B would become a more efficient business by “taking a more aggressive approach to costs”, Evans said.

Alceon has secured about 80 per cent of Noni B’s shares in a $16.4 million takeover, which came about after the company’s founders undertook a review of their ownership.

Founder Alan Kindl, an industrial chemist who started the business in 1977, stepped down at Friday’s meeting.

“This is going to be very hard for me,” he said.

“As you can tell, I’m very emotional about it.”



Comment Manually

Inside Retail Polls

What were the biggest challenges during the 2019 holiday period?


Department store Myer has further streamlined its executive team, cutting 35 roles from its head office in Melbourn…

3 days ago

Clothing retailer Jeanswest is the latest retailer to enter voluntary administration, citing difficult trading co…

4 days ago

Our contributor recalls a few once-popular retail metrics and suggests we should think twice before moving on to th…

4 days ago