Noni B's soon-to-be owners hope to win back the fashion retailer's traditional customer base after a failed bid at luring in younger shoppers.
Investment group Alceon has put forward a $16.4 million takeover offer for the retailer and the deal is set to go ahead with the backing of the company's board and its founders.
Alceon executive director Richard Facioni plans to return Noni B's focus to its traditional over 50s demographic after efforts to attract younger women saw its comparable sales drop almost eight per cent in 2013/14.
"What they did was target part of their range to a younger demographic, to that 40-plus demographic, which simply doesn't shop at Noni B," he told AAP.
"Our view is that it really just needs to be brought back to its core customer. It's quite a simple story."
The sales slump saw Noni B record an underlying loss of $2.2 million last financial year, but Mr Facioni was confident the brand remained strong.
He said the retailer had a loyal customer base that was less affected by changing fashion trends and there were relatively few competitors in its market segment.
Alceon did not have any plans for a major restructure of the business and isn't anticipating any significant store closures.
But Mr Facioni said the company could benefit from a new senior management team.
"Noni B has been around a long time, it's really been run as a family business," he said.
"We think with professional management brought in there's an opportunity to reinvigorate the business.
Noni B's board of directors has recommend shareholders accept Alceon's 51 cents-a-share offer, which is 32 per cent above the 38.5 cents the shares fetched in May, before it announced a major structural review.
And members of the Kindl family, which founded Noni B in 1977, have agreed to grant an option to Alceon over the 19.9 per cent stake they have in the retailer.
Founder Alan Kindl said he was pleased the takeover offer would secure Noni B's future.
"Furthermore, I strongly believe that under Alceon's ownership, Noni B will see increased focus on its brand, product and retail presence and that the company will continue to serve its customers throughout Australia," he said.
OptionXpress market analyst Ben Le Brun said the takeover was a good deal for Alceon.
"It does trade at a rather healthy discount to its peers. It looks like they are picking up a bargain," he said.
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