City Chic Collective closes 14 stores as negotiations with landlords conclude
15 June 2020, Written by Business News Australia
Fashion retailer City Chic Collective (ASX: CCX) has decided to close 14 holdover stores after finalising rental negotiations with its landlords.
The company says its landlords have agreed to reduced rents for all stores except for 14 which will now be closed as a result.
The remaining 92 stores across Australia and New Zealand have now fully reopened after COVID-19 restrictions have eased in these two jurisdictions.
City Chic Collective says the impact of the closures on the company's future earnings is expected to be minimal, with customers instead being redirected to nearby stores and the company's online channel.
The listed retailer has a sturdy online presence, with approximately two thirds of its global sales resulting from its online shopfronts.
"The decision to close these stores reflects our focus on appropriate store economics," says City Chic CEO and managing director Phil Ryan.
"We remain committed to opening new stores and converting stores to larger formats where deals can be structured to reflect the current retail environment.
"As an omnichannel retailer we will continue to engage with our customers across multiple touch points, but recognise the ongoing shift to online and are well positioned to execute on our digital strategy."
Business News Australia
Author: Business News Australia