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.”
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.