Sales slump takes the shine off stationery chain.

 

Premier Investments has postponed plans to spin-off its global fashion stationery chain Smiggle while it concentrates on a possible merger of its apparel brands with department store Myer.

 

Smiggle reported 7.4 per cent slide in turnover for the 12 months to July 27 with sales falling to $296 million.

 

Premier Investments executive chairman Solomon Lew has partly blamed a sales slump at the Smiggle on its former boss John Cheston, who was forced out last month for alleged “serious misconduct and a serious breach of his employment terms”.

 

“Obviously through difficult economic times, parents don’t have a lot of money to spend on a second backpack, or a second lunchbox,” Lew said of Smiggle’s performance.