Postie Plus Group intends to sell its chain of 18 Babycity stores, which specialise in baby products, childrenswear, and equipment.
Postie Plus chief executive Ron Boskell says the Babycity chain doesn't fit the group's business model and growth strategy and the sale will put the company in a better position to expand.
He says the company wants to acquire complementary brands to expand its retail footprint and boost its core Postie brand.
The chain's new owner is Baby City Retail Investments, a company owned by Trevor Douthett - formerly of LV Martin.
No sale price has been disclosed.
Postie Plus will continue to supply clothes to the stores under a wholesale agreement.
The sale should be complete in early May, subject to shareholder approval.