Fashion company Noa Noa fights for its survival.
Experts say the only way out is to merge with other brands and reduce production costs.
After several years of losses, it looks very tough for fashion brand Noa Noa. Last summer, owner Axcel set down the value of the business from 1.2 billion to 450 million DKK. Meanwhile, Noa Noa has a debt of 600 million to Nordea, writes Berlingske Business.
“I would not buy Noa Noa now, since it is extremely difficult to reverse the trend in the company,” consultant and retail expert Henry Spandet-Møller told the newspaper.
He says that Noa Noa has too high production costs and too many intermediaries and says that it’s probably just a merger with other brands that could have an effect.
“Noa Noa is too dependent on stores who are often forced to sell at a reduced price. It’s either the stores or the brand that gets rid of the margins, “says Henrik Spandet-Møller.