City Chic Collective (ASX: $CCX) Announcement Overview

City Chic Collective Limited (ASX: $CCX) has announced the sale of its US-based Avenue business to Fullbeauty Brands for US$12 million, the restructure of its current debt facility, and a trading update for FY24. The sale of Avenue aligns with the Group's strategy to focus on its core City Chic customer in ANZ and the US. The forecast Group sales for FY24, including Avenue, are down approximately 30% to $187 million, with a forecast Proforma Adjusted EBITDA post-AASB16 from Continuing Operations of a $9.3 million loss.

Executive Commentary

City Chic Collective has signed a definitive agreement to divest its US-based Avenue business to Fullbeauty Brands for US$12 million, in line with our strategic focus on the core City Chic customer in ANZ and the US. The restructure of our debt facility and the forecasted sales update for FY24 reflect our commitment to adapt to market conditions and position the Group for sustainable growth. We will continue to keep the market informed of material developments as we progress with the proposed capital raise and other strategic initiatives.

Summary of City Chic Collective Announcement

City Chic Collective (ASX: $CCX) has finalized the sale of its US-based Avenue business to Fullbeauty Brands for US$12 million, demonstrating its strategic alignment to focus on the core City Chic customer in ANZ and the US. The restructure of the debt facility and the FY24 sales update, with a forecasted 30% decrease in Group sales and a $9.3 million loss in Proforma Adjusted EBITDA post-AASB16 from Continuing Operations, indicate the Group's proactive approach to navigate market challenges. City Chic will continue to pursue its proposed capital raise and provide ongoing updates to the market, emphasizing its commitment to transparency and strategic growth initiatives.