City Chic may divest Avenue brand, launch capital raising
City Chic is expected to divest its Avenue brand, with the Australian Securities Exchange agreeing to suspend trading of the shares of the women’s fashion retailer pending an announcement.
City Chic also said it intends to launch an equity capital raising through a fully underwritten institutional placement and a fully underwritten pro-rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares.
The company has not yet disclosed the amount it is seeking to raise, but the Australian Financial Review reported that it would be about $25 million.
The AFR noted that the company has tapped Canaccord Genuity as lead manager for the equity raising. The financial services provider has already started discussions with investors.
AFR‘s sources said a divestment of Avenue would allow the company to focus on higher value products and markets in the US, Australia, and New Zealand.
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