Specialty Fashion Group (SFG) has confirmed the successful completion of its $31 million transaction which will see Millers, Katies, Crossroads, Autograph and Rivers acquired by Noni B.
The agreement will see Noni B acquire all assets and liabilities relating to these businesses after the group raised approximately $40 million through the issuance of shares to fund acquisition and integration costs.
For SFG, the sale proceeds will be used to strengthen the company's balance sheet by paying down debt and enhancing its cash position to support growth plans for City Chic.
SFG chairman Anne McDonald said the completion of the sale marks a new beginning for the group as a company focused wholly on driving the strategic priorities and growth agenda of City Chic.
“City Chic has effectively embraced the forces disrupting retail and, with online sales of 37% is one of Australia's most cohesive and successful multi-channel retailers.
“With the right corporate and capital structure now in place, City Chic is well positioned to further strengthen its customer-led approach and execute its strategy to become a global brand.
“The board sincerely thanks the Millers, Katies, Crossroads, Autograph and Rivers employees transitioning to Noni B for their contribution to the group.
“We look forward to watching them continue to develop and grow these businesses with an owner that is well placed to support the next stage of their journey.”