• City Chic going from strength to strength.
    City Chic going from strength to strength.

City Chic has acquired a bankrupt US business for $25 million, sending its shares soaring 12% within hours.

The Australian retailer announced itself as the winner in an auction for plus-size brand Avenue's eCommerce assets.

City Chic raise its bid from $14 million to $24.4 million to acquire Avenue's database and inventory.

Avenue filed for bankruptcy in August, shutting its brick-and-mortar stores in the midst of an "extremely competitive retail environment."

Meanwhile City Chic, also a plus-size brand, has seen a boom in its US business via partnerships with large US retailers like Macy's and Nordstrom.

Its shares have now more than doubled in the past year, up from $1.37 at the same time in 2018.

The retailer will fund the acquisition with a mix of existing cash and credit loans.

The deal will be completed mid-October subject to US Bankruptcy Court approval.

City Chic operates 104 stores in Australia and New Zealand.

Avenue generated $US75.3 million in revenue from January to May, $US27.1 million of which is attributed to online sales.

Pictured: City Chic's winning trend-driven look. 

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