City Chic has announced the sale (exit) of its UK and European business for A$12 million. This a modest price given it paid close to $50 million, but it does simplify the group and further improves its net cash position. We lift our EBITDA (pre AASB-16) in FY24e from -$6 million to -$1 million. Medium term, we have lowered our EBITDA by close to $3 million, indicating a 4x multiple for the exit. The strategic review clearly signals a focus on simplicity for City Chic and there is sufficient upside in the Americas and Australia/NZ for the group. Its net cash position also adds to the appeal and is a key feature of our positive rating.