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.