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https://thewest.com.au/business/ret...s-snaps-up-city-chics-avenue-label-c-15071782

US-based fashion retailer FullBeauty Brands snaps up City Chic’s Avenue label

Cheyanne EncisoThe West Australian
Wed, 19 June 2024 12:47PM



The news this week follows a tough trading period for plus-sized fashion retailer City Chic. Credit: Supplied

New York-based company FullBeauty Brands says it has signed a “definitive agreement” to buy the Avenue label from beleaguered plus-sized fashion retailer City Chic.

In a statement overnight on Tuesday, FullBeauty chief executive Jim Fogarty said the addition of Avenue would further its leading position in size-inclusive fashion.
The company did not disclose the purchase price.

“Avenue is a unique opportunity for us to expand our offerings to our classic digital mall customers,” Mr Fogarty said.
Avenue marks FullBeauty’s fourth acquisition in just over a year, with the company’s recent purchase of US fashion retailer Dia & Co in April.

City Chic on Tuesday requested back-to-back trading halts of two days each until Monday to reveal more about the proposed divestment — without naming the buyer — and announce a capital raising.

It comes after billionaire retail magnate Brett Blundy pushed his stakes higher in City Chic.

It was revealed Mr Blundy’s Singapore-based BBFIT Investments purchased a combined 3.3 million shares for $920,670 across three transactions on June 13, 14 and 17.

This has boosted the group’s voting power from 9.9 per cent to 11.3 per cent.
Mr Blundy is already the chair of global jewellery chain Lovisa and owns a 40 per cent stake in the retailer through his investment vehicle BB Retail Capital.
He was also the former owner of shopping mall mainstays Sanity and Bras ‘n’ Things.

The news this week follows a tough trading period for City Chic with the retailer in February revealing first-half sales hit $105.8 million, a 29 per cent drop on the same time last year.

It reported a loss for the first half of $7.5m, and active customers were down 11.4 per cent to 492,000.