City Chic Collective has responded to media speculation about it acquiring a second US business.
Yesterday evening, the Australian Financial Review (AFR) reported that City Chic had its team in discussions about acquiring, "a distressed American retailer, and is mulling an equity raising to help make the acquisition."
The publication reported that investors, "are known to be watching out for the deal."
In a statement to the ASX, City Chic said that its strategy includes growing its international plus-size business and global customer base, but that no agreement had been reached as yet.
"As part of this strategy, the Company continues to explore various potential acquisition opportunities globally," City Chic said.
"There has been no agreement on the terms of any possible acquisition, nor is there any certainty that any such agreement will be reached or that any acquisition will be made.
"Accordingly these opportunities are not regarded as sufficiently advanced to warrant any further disclosure at this time," the company said.
City Chic added that if such an agreement is reached, it will consider the various funding options available.
"If agreement is reached on the terms of any acquisition, the Board will consider the appropriate funding options available to the Company.
"This may include cash, debt and/or an equity capital raising," the business said.
In October 2019, City Chic acquired bankrupt US, plus-size business Avenue for $25 million.