City Chic shares have been placed in a trading halt ahead of a forthcoming asset auction for a bankrupt US brand.
The Australian plus-size clothing retailer announced last week it had been named as the “stalking horse” bidder for American firm Avenue’s e-commerce assets, including its well-established customer database and inventory.
At the request of City Chic, trading was halted before Friday’s open and will remain until Tuesday or when the company reveals the auction result.
Shares in the company were last trading at $2.50, up 82 per cent from $1.37 a year ago.
Avenue, established more than 30 years ago, filed for bankruptcy in August and is shutting down its brick-and-mortar network of stores.
Sydney-based City Chic’s lead-off offer for the auction has been set at $US10 million ($A14.8 million).
It plans to fund the potential acquisition with a combination of cash and debt, with the transaction expected to be completed by mid-October if successful.
City Chic has 104 physical stores in Australia and New Zealand and counts US retailers Macys and Nordstorm as marketplace and wholesale partners.
AAP
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