Australia's City Chic soars after divesting Evans brand and exiting EMEA

City Chic Collective

04/08/2023 02:33

** Shares of City Chic Collective  CCX.AX  rise as much as
21.9% to A$0.585 - set for best day since March 2020, if gains
hold
    ** Stock hits highest level since Feb. 24
    ** After market hours on Thursday, fashion retailer said it
had divested its Evans business and EMEA inventory to AK Retail
Holdings
    ** Says under deal, AK Retail will pay co a total cash
consideration of 8 mln pounds ($10.18 mln) 
    ** Co says it will also close its UK warehouse and the
Navabi brand will cease trading
    ** Morgan Stanley says divestment makes strategic and
financial sense and should be positive for stock 
    ** Brokerage says simplified business will allow more
capital and time for more profitable brands and regions
    ** Stock top gainer on ASX All Ordinaries index  .AORD 
    ** As of last close, stock up 1.1% YTD


($1 = 0.7855 pounds)

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))