Noni B’s uncertain future
The retailer is blaming the federal government’s tough budget and unseasonally warm autumn weather for its poor performance, prompting Noni B’s owners to consider their options.
Noni B shares fell by more than nine per cent after the retailer warned it expects to make an annual loss of between $1.8 million and $2.2 million due to ongoing falls in sales.
Its March quarter sales fell 14 per cent, and sales since have been impacted by a warm autumn and the impact of spending cuts in the federal budget, the company said on Wednesday.
Its bottom line for this financial year will take an additional $5.5 million hit from new write downs on the value of Noni B’s intangible assets.
The Kindl family, who own a 40 per cent stake in Noni B, are holding talks with the retailer’s independent directors about alternatives for the company’s capital structure.
That could indicate a potential sale of their stake in the company, or the Kindl family taking it off the stock market.
James and David Kindl are the company’s joint managing directors, while Alan Kindl also sits on the board.
The company caters to women over 40, and currently has 212 stores across Australia.
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