and ongoing sluggish spending by consumers meant administrators were unable to find buyers for failed fashion chains. This week, Noni B in Australia and Postie Plus in New Zealand have both attracted interest from potential buyers. The suitors have not been disclosed, but in the case of Postie Plus, it has been confirmed that an “overseas-based retailer” is conducting due diligence after signing a conditional agreement to buy the 82 store fashion chain. It is not yet known whether the buyer wants to acquire the entire Postie Plus store network or if the chain will be rebadged to align with the overseas brand, which is understood to be an Australian company. Postie Plus is heavily in debt and was placed in the hands of administrators after bankers withdrew support. It has been in breach of loan covenants since April, after posting substantial trading losses. PricewaterhouseCoopers, the administrator appointed to Postie Plus, has warned there is unlikely to be any return to shareholders, even if a sale is concluded. The largest shareholder in Postie Plus is Jan Cameron, the former owner of Kathmandu, who is also struggling to keep afloat the discount stores chain she acquired from receivers of her own Retail Adventures business last year. Cameron is facing legal action over the collapse of Retail Adventures and the deal done with receivers to resume control over a streamlined store network. Closer to home Noni B is understood to have been approached by several parties following indications the chain is struggling, with sales down 14 per cent for the third quarter and 7.8 per cent down on the year to the end of May. It has forecast a trading loss of between $1.8 million and $2.2 million before any other provisions, and the Kindl family, which owns around 40 per cent of the issued scrip, has called in financial advisors to review options. Noni B is expected to see further writedowns of at least $5.5 million this financial year. Inside Retail PREMIUM understands Noni B has been adversely impacted by outdated technology systems and, like Postie Plus, carrying underperforming stores in a network that needs to be tightened. The company has appointed a sub-committee to evaluate options and pursue discussions with parties that have expressed an interest in acquiring a controlling interest in the listed company – a transaction which would be expected to see the Kindl family sell out of the business they started in 1977. Expressions of interest are at a “very preliminary stage”, but rumblings of a possible suitor were sufficient to breathe life into a share price that has languished for months amid concerns about sales and earnings. Noni B has already announced the closure of seven stores in the current half, but has an opportunity to further consolidate its business, with around 30 per cent of store leases due to expire in the 2014 calendar year.