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FULLBEAUTY Completes Restructuring with $105MM Exit Financing from Citizens Bank

February 11, 2019, 07:13 AM
Filed Under: Retail

Editor's Note: On Friday, February 8, 2019, ABL Advisor inaccurately reported the restructuring facility amount provided by Citizens Bank. The correct amount is $105 million. We apologize for this error.

FULLBEAUTY Brands Holdings Corp. announced that it has successfully emerged from its Chapter 11 restructuring with approximately $35 million in new financing after eliminating approximately $900 million of debt. The reorganized Company's largest shareholders are now investment vehicles managed or advised by the Goldman Sachs Merchant Banking Division and funds managed by Oaktree Capital Management, L.P. Affiliates of the Company's equity sponsors, Apax Partners and Charlesbank Capital Partners, will receive minority stakes in exchange for providing advisory services to the reorganized Company. Other holders of the Company's prebankruptcy first-in, last-out loan claims, its first lien claims and its second lien claims also hold stakes in reorganized FULLBEAUTY. 

The Company's new asset-based loan will be provided by Citizens Bank.

The Company's turnaround, which started in early 2018 with the arrival of a new senior management team headed by Chief Executive Officer Emilie Arel, will accelerate following the completion of its restructuring. FULLBEAUTY has already made significant progress to improve its merchandise assortment, expand distribution, strengthen the customer experience, rationalize costs and transform its corporate culture. FULLBEAUTY will continue working to evolve into a multi-channel, customer-focused retailer optimized for the future.

CEO Emilie Arel said: "Through the restructuring, we have strengthened our balance sheet and gained additional financial flexibility. Going forward, FULLBEAUTY is well-positioned to create sustainable value for our stakeholders, including customers, employees, suppliers, business partners and lenders.

"FULLBEAUTY has highly relevant brands and our new owners share our confidence in the power and potential of those brands. The market for plus-size apparel is growing faster than the apparel market overall, and FULLBEAUTY in particular benefits from our position at the high end of the size curve as well as our ability to drive strong results without the burden of brick and mortar retail stores."

During the restructuring process, Kirkland & Ellis LLP, PJT Partners, and AlixPartners served as advisors to the Company. Working with the management team, these advisors ensured that FULLBEAUTY obtained court approval of its plan of reorganization in less than 24 hours and emerged from Chapter 11 in less than four days, a record-breaking pace which has helped to preserve the Company's relationships with key stakeholders and which will position the Company for future success.


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