Struggling retailer Noni B has made a $7.8 million loss amid falling sales partly caused by the impact of the federal budget.
The company says a review of the company's future by its major shareholders was close to a conclusion, although no sale of the business or other proposal is guaranteed to proceed.
Sales at the women's fashion chain dropped 7.7 per cent in the year to June 30, to $112 million, contributing to an underlying loss of $2.2 million.
Noni B also reduced the remaining value of its intangible assets to zero in the year, adding a further $5.6 million dent to its bottom line.
The company's sales picked up slightly in the final three months of the year, as it conducted promotions to try to stimulate demand.
"Sales were also impacted by the unseasonably warm weather and by reduced spending by Noni B's core customers following the federal budget," it said.
The company has been approached by several parties interested in taking a stake or complete control of the company, after it announced its major shareholders, the Kindl family, were undertaking a strategic review of the company.
It said on Friday that review has substantially progressed and the outcome is likely to be announced shortly.
Noni B shares are currently worth 45 cents, down from 66 cents in January.
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