City Chic, which is backed by private-equity firm Accel, has entered Europe’s plus-sized womenswear market with the acquisition of online retailer Navabi.
City Chic, which reported a profit for the year ended Dec 31, said it expected its earnings before interest, tax, and depreciation to grow about 60 per cent.
City Chic reported a 33 per cent rise in sales, helped by robust growth in the US and Britain. The fashion retailer also expanded its online range and added new categories such as underwear and leisure clothes.
City Chic is Australia’s largest plus-size retailer, with more than 90 stores and six brands.
City Chic has acquired the Israeli company Navabi for 40 billion, which will allow the company to expand its presence in the European plus-sized market.
City Chic, which is owned by private equity firm CVC Capital, acquired the e-commerce and wholesaling division of British retailer Evans in 2020 for $41 million.
In 2019, the company sold its e-commerce business and assets of Avenue Stores.
The rise of the pandemic has affected the demand for workwear and fashion. This is the reason why tech startup Navabi was founded 12 years ago.
The number of customers of Navabi has fallen from 10 million to 5.8 million, with most of them being in Germany. The company’s sales have also decreased by almost half to $16.6 million.
City Chic plans to expand its presence in Europe by introducing its various brands to existing customers and rebuild their inventory levels.
City Chic will use its cash reserves to fund the acquisition.
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