Noni B falls to another loss
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.”