- City Chic Collective (CCX) will temporarily close all Australian stores due to the coronavirus (COVID-19) pandemic
- This will take effect at the end of the week, following the recent closure of all New Zealand-based stores
- This decision came from the Australian Government’s directions against socialising and to limit outside, ‘non-essential’ activities
- City Chic’s online store will remains open however
- On market close, City Chic is down slightly, trading for $1.07 per share
City Chic Collective (CCX) temporarily closes stores due to the coronavirus (COVID-19) pandemic.
The company will close its doors across Australians stores at the end of the week. These closures follow in New Zealand’s footsteps who implemented the change earlier this week.
The decision to close its doors came from the Australian Government directions of social distancing and to limit the activities outside.
CEO Phil Ryan says the store team members are the heart of the brand.
“They drive our culture and have created the sisterhood gaining the trust of hundreds of thousands of customers around Australia and New Zealand each year,” he said.
“For the next month we will not stand down any full time and part-time store team members who have made city chic the business it is today through over a decade of commitment and a love for our brand,” he added.
City Chic stores contribute to 30 per cent of the total sales, the rest is online.
“As an omni-channel retailer with two-thirds of our sales online and three times the range online versus stores, we can continue to serve our loyal customers through our digital channels,” Phil told the market.
“We have the advantage of more variable cost structure than most traditional retailers, but we will continue to be prudent through this period of uncertainty,” he added.
City Chic said it is in a strong financial position with significant headroom in its $35 million debt facility, which expires in February 2023.
“I have been overwhelmed with the positive energy of the team to come together more than ever to get through this and be positioned to come out stronger,” Phil said.
On market close, City Chic is down slightly, trading for $1.07 per share.