City Chic Collective acquires the plus size brand Navabi

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Australian retail group City Chic Collective, specializing in plus size women’s clothing, footwear and accessories, has acquired German plus size e-commerce retailer Navabi for € 6 million as part of its strategic plans to gain a foothold in Europe.

City Chic Collective, listed on the Australian Stock Exchange, acquired 100 percent of Navabi’s shares in cash from the founders of large-scale online retailer Zahir Dehnadi and Bahman Nedaei.

Phil Ryan, CEO and Managing Director of City Chic Collective, said in a statement: “Navabi is an exciting strategic opportunity, giving us a good position in the Euro 40 billion large size market, which is the next geography. key in driving towards our vision of leading a world of curves.

“Over the past decade, we have followed Navabi in building a strong online market for large brands. Client Navabi has the same emotional connection that has led to our success, and we are delighted to introduce our brands to this European clientele. The acquisition is in line with our proven strategy of increasing our global digital customer base and profitable revenue growth. “

The acquisition includes all of Navabi’s assets and liabilities, including € 2.1 million in cash net of tax.

City Chic Collective targets the European market after the acquisition of Navabi

Navabi was founded in 2009, establishing itself as an online marketplace for hundreds of third-party plus size women’s brands, selling clothing, shoes and accessories, as well as developing its own exclusive brands. The online retailer’s customers are primarily based in Germany, however, it has several websites in European countries including the UK and France.

In 2020, Navabi generated revenue of 10.4 million euros and recorded 5.8 million customer visits to its websites. However, City Chic Collective adds that the e-commerce platform was hit by the pandemic, as website traffic in previous years had exceeded 10 million visits, and although the company negotiated its profitability in 2021, revenues and traffic did not recover before the pandemic. levels.

Looking ahead, City Chic Collective has said that Navabi’s inventory is “depleted” during the pandemic and that it will look to rebuild it to “more commercial levels” over the next six months and that it will expects trade and profitability to “improve” from 2022.

He also confirmed that the Navabi employee team has been acquired and will work with the founders and senior management throughout the transition and that the “future structure will be assessed as part of the integration with the City collective. Chic ”.

This is the second acquisition of the Australian distribution group in Europe, in December 2020, it acquired Evans from Arcadia in a deal that excluded the retailer’s store networks and announced its intention to operate the label as an online-only brand.

City Chic Collective operates City Chic, Australia’s leading plus-size fashion retailer, which has a network of 89 stores in Australia and New Zealand, as well as a successful e-commerce channel, as well as Avenue, based in the United States, which targets value-conscious women, and Hips and Curves, an online lingerie brand. It also has market and wholesale partnerships with major US retailers such as Macy’s and Nordstrom and European and UK partners including Asos and Zalando.



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