City Chic Collective (ASX:CCX) has announced the sale of its Evans business and its intentions of exiting the EMEA inventory.

The divestment operation was handled through an asset sale and purchase agreement.

Under this agreement, AK Retail Holdings will pay City Chic a cash consideration of £8 million.

City Chic also finalized its deal with its 3PL provider to cease its operation in the UK warehouse, which also bolstered its European operations.

As a result of the sale, assets held for the end of FY23 will incur an impairment ranging from A$29M-A$31M.

City Chic Collective is a S&P/ASX 200 listed company specializing in plus-size women’s fashion.