- Plus size clothing company City Chic Collective is set to purchase bankrupt U.S. retailer Avenue Stores
- City Chic won its US$16.5 million bid for the company in an auction yesterday
- The purchase, however, is not final until it goes through the U.S. Bankruptcy Court next week
- If approved, this will give City Chic a chance to expand in the U.S.
- City Chic shares are up 9.60 per cent today, worth $2.74 apiece
Plus size clothing company City Chic Collective is set to purchase bankrupt U.S. retailer Avenue Stores LLC.
Last week, City Chic was named the stalking horse bidder for Avenue’s e-commerce assets, including its well-established customer database and inventory.
Yesterday, the auction for Avenue took place in the United States and City Chic was the winning bidder with an offer price of US$16.5 million.
Avenue has been a leader in the fashion industry for plus size clothing for the past 35 years. However, it filed for bankruptcy last month and has since been closing all of its stores in the U.S.
City Chic is a leading Australian multichannel retailer and specialises in plus size womens’ apparel, accessories, and footwear.
It has a strong following in Australia and New Zealand, with a fast-growing presence in North America and Europe.
City Chic’s winning bid will now need to be approved by the U.S. Bankruptcy Court in Delaware on October 7. Any objections to the sale by interested parties will be heard during the court hearing.
“Subject to approval from the US Bankruptcy Court, the transaction is expected to close in mid-October 2019,” the company said in an announcement to the market today.
Purchasing Avenue will provide City Chic with significant value segment in the U.S. plus size market.
According to research from Coresight, the plus size market is expected to grow to $24 billion in the U.S. by 2020.
The company will provide more details of the transaction following the U.S. Bankruptcy Court hearing.
City Chic is up 9.60 per cent on the Australian Stock Exchange today and is currently selling shares for $2.74 apiece at 1:11 pm AEST.