Plus-size apparel company City Chic has sold its Evans brand to AK Retail Holdings for GBP8 million (AU$15.5 million).

The agreement, reached on August 3, also includes the sale of all the inventory in City Chic’s EMEA business.

The proceeds from the sale will be used for working capital purposes and to pay the group’s remaining $1.5 million acquisition facility.

The debt facility limit has been lowered from $30 million to $20 million and will shrink by another $5 million at the end of June 2024.

In addition, the Navabi business will also stop trading as City Chic has agreed with its third-party logistics provider to close its UK warehouse.

“We have seen a significant deterioration in the EMEA market over the past two years which has hampered our ability to sell our expanded product range, compounded by global supply chain constraints,” said Phil Ryan, CEO and MD of City Chic.

“We are continuing with the rationalisation of our product offering, streamlining our supply chain and focusing on cost management.”

Specialising in plus-size women’s apparel, footwear and accessories, City Chic has a portfolio of brands including City Chic, Avenue, Evans, CCX, Hips & Curves, Fox & Royal, and Navabi.