Embattled S&P/ASX 300 Index (ASX: XKO) share City Chic Collective Ltd (ASX: CCX) has a new major investor following a $7.75 million buying spree by billionaire retail fanatic Brett Blundy.
The entrepreneur began his career by building a struggling Melbourne music store into Sanity Entertainment Group and has since founded Bras N Things. He now commands a $2.28 billion fortune, according to The Australian.
Blundy is no stranger to the ASX retail space, either. He currently boasts notable stakes in Lovisa Holdings Ltd (ASX: LOV), Accent Group Ltd (ASX: AX1), and now, City Chic.
Letâs take a closer look at the ASX 300 shareâs newest major shareholder.
Aussie retail billionaire snaps up City Chic shares
No doubt plenty of eyes are on the City Chic share price on Thursday. Blundyâs new 7.3% stake in the struggling plus-sized fashion retailer was revealed yesterday.
The billionaire built the holding up in four purchases between 22 December and 16 January, paying an average of around 44 cents per share.
The first purchase occurred just days after the City Chic share price crashed 31% to a 52-week low of 37.5 cents on the release of a disappointing trading update.
The company declared it expects to post an earnings before interest, tax, depreciation, and amortisation (EBITDA) loss for the first half after demand faltered, forcing it to spend on more promotional activity.
The ASX 300 share has since rebounded to trade at 72 cents at the time of writing, 12.5% higher than its previous close.
Though, it’s still a whopping 87% lower than it was this time last year.
What else is going on with the ASX 300 share?
Blundyâs buy wasnât the only change in the companyâs register announced yesterday.
It also revealed the nationâs largest super fund, AustralianSuper, has reduced its position in the retailer by 6.16 million shares leaving it with a 5.9% stake, down from 8.5%.
Eagle-eyed market watchers might also be eyeing the City Chic share price for another reason.
The company previously promised to release a detailed trading update for the first half in mid-January. No such announcement has been released at the time of writing.
The post Guess which beaten-up ASX 300 share this Aussie billionaire is buying up big appeared first on The Motley Fool Australia.
Our Favorite E-Commerce Stocks
Why these four e-commerce stocks may be the perfect buy for the “new normal” facing the retail industry
See the 4 stocks
*Returns as of January 5 2023
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- 2 ASX 300 retail shares to buy right now, and one to avoid: Macquarie
- Little downside protection for popular ASX 200 shares as 2023 looms a much tougher year for blue chip stocks
- Why BWX, City Chic, Domain, and John Lyng shares are sinking today
- Why did this ASX All Ordinaries share just crash 19%?
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Accent Group and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/6n5rbPD
Leave a Reply