Fullbeauty files for bankruptcy as part of restructuring agreement
Fullbeauty Brands Inc. has reached a restructuring agreement with key stakeholders that will ultimately see the fashion group file for a planned Chapter 11 bankruptcy, later this month.
The restructuring transaction is expected to reduce the New York-based plus-size apparel group’s indebtedness by approximately $900 million, as well as strengthen the company's balance sheet and enhance its financial flexibility going forward.
The agreement was reached with sponsors Apax Partners and Charlesbank Capital Partners and holders of first and second lien term loan claims.
The filing will allow Fullbeauty to continue to operate in the normal course during the restructuring process. Its websites and social media pages will remain open for business and the company will process orders as usual.
Additionally, the company has negotiated agreements with certain of its existing lenders for a new $30 term loan in order to pay suppliers, vendors and other business partners in a timely manner.
"The agreement with our lenders and equity holders represents their support of Fullbeauty's future success. We are fortunate that Fullbeauty has highly relevant brands and a dedicated customer base and I am confident that the outcome of this process will be a more sustainable and stronger company for our customers, employees, vendors and business partners," explained CEO, Emilie Arel, in a news statement.
Fullbeauty, which owns brands like Woman Within, Roaman's, Jessica London, Ellos, and KingSize to name a few, has been struggling and initiated a turnaround plan last year, when it named a new senior management team.
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