Specialty women’s wear retail City Chic is seeking to raise...

Specialty women’s wear retail City Chic is seeking to raise about $25 million to shore up its balance sheet, sources said.Canaccord Genuity is lead manager on the equity raising and started wall-crossing investors on Tuesday. The company is also expected to announce the divestment of American brand, Avenue. Its shares have been placed in a trading halt.City Chic models at Melbourne Fashion Festival, 2011. Pat ScalaSources said the sale of Avenue – which is exposed to the softer consumer environment given its customers typically account for lower sell price and basket sizes – would allow City Chic to focus on higher value products and customers in the United States, and Australia and New Zealand.After selling Avenue, City Chic will have only one brand – its own – to worry about.The stock is down 45.5 per cent year-to-date and last closed at 30¢. Among its problems has been an inventory build-up at a time when high inflation and concerns about consumers’ health are already threatening its outlook.RELATED QUOTESCCXCity Chic$0.300 1.69%1 year1 dayJun 23Sep 23Dec 23Jun 240.2200.3300.4400.5500.660Updated: Jun 18, 2024 – 11.10am. Data is 20 mins delayed.View CCX related articles Proceeds from the divestment and capital raising will underpin City Chic’s balance sheet and “re-set” the company for future growth, fund managers were told.