Noni B shopping spree

Retailer snaps up host of Specialty brands

Noni B will emerge as one of the nation’s largest women’s clothing retailers after striking a deal to buy the Katies, Millers, Crossroads, Autograph and Rivers chains.

NONI B will emerge as one of the nation’s largest specialty women’s clothing retailers after striking a deal to buy the Katies, Millers, Crossroads, Autograph and Rivers chains.

Noni yesterday said it was buying the clothing chains from the loss-making Specialty Fashion Group for $31 million.

Specialty will sell all its brands except for the plus-size women’s apparel chain City Chic. Noni B owns a retail chain trading under its name as well as Rockmans, W.Lane and BeMe.

The acquisition will boost its network to more than 1350 stores across nine brands.

The sale comes after a potential $135 million takeover of Specialty by an investment company controlled by the Qatari royal family fell over last year. Specialty has spent the past three years mired in the red, notching up an $8.4 million loss last financial year.

The group has blamed aggressive discounting in the sector for an ongoing sales slump for Millers, Crossroads and Katies.

The Specialty assets generated losses of $6.2 million for the 2017 calendar year.

Noni B yesterday said it expects further losses from the businesses in its 2018 financial year results.

Noni B Group chief executive Scott Evans said the businesses were underperforming “for a number of reasons”.

“We believe our disciplined approach to costs of doing business, combined with our customer focus, will ensure a successful turnaround,” he said.

Mr Evans said Noni B expects it will be able to find savings and efficiencies that will result in the acquired portfolio of brands breaking even on an earnings basis in the 2019 fullyear result.

Specialty has been without a chief executive since Gary Perlstein stepped down in November after 14 years at the helm. His departure sparked a deep structural review.

Specialty chair Anne McDonald said the directors unanimously agreed that retaining City Chic, the group’s growth business, and selling the other brands was the best plan.

“The transaction will provide the funding flexibility, corporate structure and management focus required to realise City Chic’s longer term full potential,” she said.