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City Chic Collective (ASX:CCX) - CEO & Managing Director, Phil Ryan - The Market Herald
CEO & Managing Director, Phil Ryan
Source: City Chic Collective
  • City Chic Collective (CCX) was up more than 14 per cent today after announcing a staged re-opening of its Australian and New Zealand stores
  • Since closing its doors eight weeks ago, the company has acted on a number of measures to remain in a strong financial position
  • These include reducing rent and costs, as well as deferring non-essential expenditure
  • City Chic's online presence has made sure some money was still coming in during this time
  • The company remains in a strong financial position and has minimal net debt and significant headroom in its $40 million debt facility
  • City Chic is up an even 16 per cent and shares are trading for $2.83 each just before market close

City Chic Collective (CCX) was up more than 14 per cent today after announcing a staged re-opening of its Australian and New Zealand stores.

These re-openings follow Government announcements made in Australia and New Zealand on May 8 and May 11.

City Chic first closed its New Zealand stores on March 25 and then announced the closure for its Aussie stores a few days later on March 27.

To help minimise the impact that store closures would have on its sales, City Chic implemented a number of measures.

These measures include reducing inventory intake and deployment across stores, holding expenditure for non-essential reasons, reducing costs, and talking with landlords regarding rent.

Over the past eight weeks, City Chic has implemented these measures and has seen reduced costs and rent, and deferred non-essential expenditure.

"I am proud of how engaged our store teams have been throughout the closure period and know they are ready and energised to get back to serving our customers in-store," CEO and Managing Director Phil Ryan commented.

"We have trialled a select number of stores in the past two weeks to ensure we can open our store network with the appropriate safety protocols in place for our team members and customers," he said.

"Being an omnichannel retailer with online contributing two-thirds of our global sales, a majority of our business has continued to operate through the COVID-19 related restrictions. This has pleasingly meant we have traded profitability through this period," he added.

City Chic says it remains in a strong financial position and has minimal net debt and significant headroom in its $40 million debt facility.

City Chic is up an even 16 per cent and shares are trading for $2.83 each just before market close.


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