City Chic broadens US reach with e-commerce acquisition
City Chic Collective, the parent company of plus-size fashion brand City Chic, has announced it will acquire the e-commerce assets of failed US retail chain, Avenue.
US Bankruptcy Court on Tuesday approved the brand’s proposed US$16.5 million acquisition of Avenue’s assets after the business entered chapter 11 bankruptcy in August.
According to City Chic, the acquisition will expand the business’s reach into the US plus-size market, and will deliver accretive growth for its international operations.
“Avenue’s e-commerce assets represent a unique opportunity to accelerate our US customer growth and expand across plus size segments,” City Chic chief executive Phil Ryan said.
“This acquisition delivers on our vision of ‘leading a world of curves’. It means that City Chic now has a portfolio, or a collective, of online business that we can leverage to further build our Northern Hemisphere presence.
“Our City Chic, Avenue and Hips & Curves brands will allow us to speak to more plus size women and deliver on-trend, well-fitting garments across multiple price points.”
Online sales across Australia and the US made up 44 per cent of total sales for City Chic in FY19.
In April, City Chic also acquired US online plus-size intimates brand Hips & Curves for US$2 million.
City Chic Collective was formed after the previous owner of City Chic, Specialty Fashion Group, divested the other brands in its portfolio – Millers, Crossroads, Katies, Autograph and Rivers businesses – to Alceon Group’s Noni B.
City Chic Collective posted strong sales in its first year as a standalone business, with revenue improving 12.6 per cent to $148.4 million, while comparable sales grew 12.2 per cent.
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