NATIONAL: Listed Australian fashion retail group Noni B has announced plans to shelve its women's apparel brand La Voca. In a statement released to the Australian Stock Exchange, the group said approximately half of the two-year-old brand's 19 stores would be rebranded Noni B with the remainder being closed - subject to lessors' approval.
The announcement comes in response to news the La Voca store concept, launched in August 2006, made an after-tax loss of $800,000 for the first half of the 2008 financial year.
Noni B chairman Robert Critchley said La Voca had been forced to face a "significant headwind" with consumer demand weakening over the past year.
Critchley said the stores were taking longer to make a profit than the group had anticipated and more value would be created for its shareholders through focusing all management resources and energy on the growth of its core Noni B business.
"While it is disappointing to have to announce the restructuring of La Voca, we emphasise that Noni B is profitable, cash generativem dividend paying and debt free," Critchley said.
He said attempts would be made to ensure all staff affected by the move would be offered "opportunities" in Noni B stores.