Why the City Chic (ASX:CCX) share price is rocketing 15% higher

In morning trade the City Chic Collective Ltd (ASX: CCX) share price is rocketing higher.

At the time of writing, the fashion retailer’s shares are up 15% to $3.65.

Why is the City Chic share price rocketing higher?

Investors have been buying the company’s shares this morning after it announced a binding asset purchase agreement to acquire the Evans brand and its eCommerce and wholesale businesses for 23.1 million pounds (A$41 million) in cash.

According to the release, Evans is a UK-based retailer of women’s plus-size clothing with a longstanding customer base and strong market position. The Evans assets will be acquired from Evans Retail Limited and certain other entities within the Arcadia group, which entered into…