City Chic Collective (ASX:CCX) potential acquisition

Company News

by Katrina Bullock

Plus sized apparel company, City Chic Collective (ASX:CCX) has placed an initial bid on the assets of US based e-commerce company Avenue Stores.

The company has been closing its physical network of stores however its e-commerce assets including a well-established customer database and inventory are up for grabs.

The bankrupt company's assets are set to be sold via auction in early October and City Chic Collective has offered a stalking horse bid of US$10 million.

Avenue Stores disclosed sales of US$75.3 million for the group from January through May 2019, 36 per cent of which was e-commerce sales.

As stalking horse bidder, City Chic has entered into an asset purchase agreement that is subject to City Chic being the highest bidder at the auction and approval by the US Bankruptcy Court in Delaware.

Shares in City Chic Collective (ASX:CCX) closed 2.94 per cent higher to $2.45 yesterday.