Fashion retail group Noni B Limited (ASX: NBL) is banking on a major turnaround in the struggling Australia retail sector after it paid Specialty Fashion Group (ASX: SFH) $31 million for a portfolio of its loss making brands.
Noni B Group has agreed to acquire the assets and businesses of Millers, Katies, Crossroads, Autograph and Rivers from the struggling Specialty Fashion Group which will retain the profitable City Chic business which last year earned around $20 million.
Specialty Fashion Group will remain a listed company with City Chic as its major asset.
The five businesses bought by Noni B recorded earnings before interest tax depreciation and amortisation (EBITDA) losses of $6.2 million for the 2017 calendar year.
“The businesses we’re acquiring are underperforming for a number of reasons. However we believe our disciplined approach to costs of doing business, combined with our customer focus, will ensure a successful turnaround,” says Noni B Group CEO Scott Evans. Read more
Ben Hall – Business News Australia – 14 May 2018