Struggling women's clothing brand Storm is being sold in the wake of a string of fashion brand failures.

Retail giant Hallenstein Glasson, which owns Storm, Hallensteins and Glassons, has signed an agreement to sell Storm to a company owned by the brand's creative director, Deborah Caldwell. The sale price was not disclosed.

The decision to sell follows a 11 per cent slump in Storm's sales for the year to August last year. During that same period, Storm posted a loss of $313,000, compared with a profit of $868,000 a year earlier.

Over the past year, a number of fashion brands have failed, including Andrea Moore, Kimberleys, TopShop, TopMan, David Lawrence, and Marcs.

Increased online competition from overseas retailers, changes in consumer spending, payment defaults, and extensive roadworks are among the reasons given for the downfall of these brands.

In a statement to the NZX, Hallenstein Glasson said it no longer considered Storm a "core asset".

In the company's annual report, chairman Warren Bell said the drop in sales was due to tough trading in a "highly-competitive" segment of the market.

It was not helped by major infrastructure works around three Auckland stores, which had a "material impact" on trade, he said.

Hallenstein Glasson decided to close its Storm store in Australia in the middle of last year, to focus on the brand in New Zealand.

However, on Monday, the company said it wanted to focus on expanding its other larger fashion brands here and in Australia.

Caldwell has run Storm since August 2005, and previously worked for JK Kids and Max Fashions.

First Retail Group managing director Chris Wilkinson said Caldwell was "highly regarded", and had been part of Storm's journey for a long time.

"She will know its challenges and opportunities well."

For Hallenstein Glasson, the decision to sell Storm was a "managed retreat from a niche market that is much better run in a more agile and dynamic way", Wilkinson said.

For that to happen, the brand would have to be run outside the constraints of a corporate structure, which was necessary for the scale of Hallenstein Glasson's wider business, he said.

"This will allow the company to concentrate on its two key brands, which are performing well, but will need constant focus in the face of Amazon and continued competition from other areas."

From April 30, the clothing brand will cease trading under Retail 161 ownership and will continue to trade under Blackstar Holdings.

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