Login | Register
Profile | Log out
logo

  • Home
  • News
  • Opinion
  • Other
    • Market Updates
    • Explainers
    • Satire
  • About
  • Contact Us
    • Contact
    • Get Covered
    • Posting Guidelines
  • Subscribe
Submit An Article

Latest Articles

  • Nanoveu Secures $2 Million to Fast-Track Commercial Launch of ECS-DoT Chip and AIoT Platform
    Nanoveu Secures $2 Million to Fast-Track Commercial Launch of ECS-DoT Chip and AIoT Platform
    • News

  • Archer Unlocks Cryogenic Sensor Breakthrough for Quantum Computing
    Archer Unlocks Cryogenic Sensor Breakthrough for Quantum Computing
    • News

  • EGL Secures $1.9M PFAS Plant Contract as Demand for Clean-Up Technologies Surges
    EGL Secures $1.9M PFAS Plant Contract as Demand for Clean-Up Technologies Surges
    • News

  • RocketDNA Secures Major Aerial Tech Contract with Vault Minerals at WA Gold Site
    RocketDNA Secures Major Aerial Tech Contract with Vault Minerals at WA Gold Site
    • News

  • BirdDog Boosts Buy-Back Offer by 40% Ahead of ASX Delisting Vote
    BirdDog Boosts Buy-Back Offer by 40% Ahead of ASX Delisting Vote
    • News

  • AML3D Launches High-Tech U.S. Facility to Power Submarine Supply Chain
    AML3D Launches High-Tech U.S. Facility to Power Submarine Supply Chain
    • News

  • Vection Enters $520K Agritech Deal to Build AI-Powered Farming Robot
    Vection Enters $520K Agritech Deal to Build AI-Powered Farming Robot
    • News

  • Unith Achieves Strong Growth in Platform Usage and Strategic Partnerships
    Unith Achieves Strong Growth in Platform Usage and Strategic Partnerships
    • News

  • FBR and Samsung Heavy Industries Execute Engineering Service Agreement for Shipbuilding Automation Project
    FBR and Samsung Heavy Industries Execute Engineering Service Agreement for Shipbuilding Automation Project
    • News

  • Bioxyne Lifts FY2025 Revenue Forecast as Psychedelics and Pharma Push Gains Pace
    Bioxyne Lifts FY2025 Revenue Forecast as Psychedelics and Pharma Push Gains Pace
    • News

City Chic completes exit from US with Avenue sale to focus on AU/NZ and clearing debt

  • In News
  • July 9, 2024
  • Alfred Chan
City Chic completes exit from US with Avenue sale to focus on AU/NZ and clearing debt

Plus-size clothing specialists City Chic Collective (ASX: CCX) has completed its departure from the US market having settled its divestment of its Avenue business to FullBeauty Brands, ending a troublesome period where marketing tailwinds were curbed by the pandemic and rise of online shopping. 

This strategic divestment is part of a business restructure by City Chic, announced last month, to focus on its core customer base in Australia and New Zealand.

The sale was valued at approximately USD $12 million (approx AUD $18 million), with all conditions satisfied, allowing for a smooth transition of Avenue to FullBeauty Brands.

While the sale addresses some of City Chic’s cash flow issues, addressing their debt situation is still a key priority to turning the business around. Subsequently, City Chic’s lender agreed to restructure the Company’s debt facility, introducing a USD $10 million multi-currency facility with an extended maturity date to December 2026. This financial manoeuvre is part of a broader restructuring effort to fortify the company’s financial foundation amid declining sales and profitability.

The divestment comes as City Chic contends with a challenging market environment. The Company has reported a forecasted 30% drop in sales for FY24, bringing expected revenue to $187 million, inclusive of Avenue. Moreover, the FY24 forecasted Pro Forma Adjusted EBITDA from Continuing Operations (excluding Avenue and Evans) indicates a projected loss of $9.3 million. These figures highlight the pressing need for City Chic to recalibrate its business strategy and streamline operations of the Company that is best known to consumers seeking plus-size clothing that is both fashionable and affordable. 

Seeking capital from shareholders, City Chic currently has an Entitlement Offer currently open to eligible shareholders who can purchase 1 new CCX share for every 2.04 CCX share they hold at an Offer Price of $0.15 per New Share. 

City Chic is hoping to raise $8.4 million, of which $2.9 million is underwritten by Canaccord but may struggle if CCX shares continue trading at their current price of $.125. 

 

  • About
  • Latest Posts
Alfred Chan
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
Latest posts by Alfred Chan (see all)
  • Harris Technology to expand refurbished tech division amid rising demand from cost-conscious Australians - April 30, 2025
  • Harris Technology secures major investment from Taiwan’s FSP Technology at 100% premium - March 10, 2025
  • ARC Funds acquires 30% of auzbiz Capital as latest direct-to-investor marketing venture - October 8, 2024
  •  
  •  
  •  
  •  
  • ASX: CCX
  • City Chic
  • Clothing
  • fashion retailer
  • FullBeauty
  • plus size
  • Retail
  • News

Leave a Comment

You must be logged in to post a comment.

1 Comment

  • Shraddha13
    March 17, 2025, 6:33 pm

    Thank you for sharing! To explore further
    https://www.360iresearch.com/library/intelligence/breathable-protective-clothing

    Reply
  • About
  • Latest Posts
Alfred Chan
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
Latest posts by Alfred Chan (see all)
  • Harris Technology to expand refurbished tech division amid rising demand from cost-conscious Australians - April 30, 2025
  • Harris Technology secures major investment from Taiwan’s FSP Technology at 100% premium - March 10, 2025
  • ARC Funds acquires 30% of auzbiz Capital as latest direct-to-investor marketing venture - October 8, 2024

Login or register for free to access unlimited reading

Register Now!
  • About
  • Latest Posts
Alfred Chan
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
Latest posts by Alfred Chan (see all)
  • Harris Technology to expand refurbished tech division amid rising demand from cost-conscious Australians - April 30, 2025
  • Harris Technology secures major investment from Taiwan’s FSP Technology at 100% premium - March 10, 2025
  • ARC Funds acquires 30% of auzbiz Capital as latest direct-to-investor marketing venture - October 8, 2024
  • News

  • Opinion

  • Satire

  • About

  • Contact Us

  • Subscribe

The content published on this website is solely for general information purposes and is not to be construed as financial advice. Should you seek financial advice you should consult with an appropriately qualified person. Opinions expressed on this site are subject to change without notice and The Sentiment who produced this content is under no obligation to keep the information current. The Sentiment, affiliated companies & associates may have a conflict of interest with companies discussed on the website due to commercial arrangements, for example they may be shareholders in the company, be engaged by them to assist in investor communications or receive commission/brokerage for funds raised.

Copyright © 2020 The Sentiment. All rights reserved.
Subscribe

Enter your email address below to subscribe to The Sentiment’s weekly newsletter, highlighting the top news, research, opinion and satire articles shaping ASX investor sentiment.

The Sentiment respects your privacy and will not spam you. View our privacy policy here.