Daily News: December 1, 2017

SSG Advises Peekay Boutiques in Sale of Assets

SSG Capital Advisors acted as investment banker to Peekay Boutiques in the sale of substantially all of its assets to an affiliate of Peekay’s senior secured Term A lenders. The sale was effectuated through a confirmed Chapter 11 Plan in the U.S. Bankruptcy Court for the District of Delaware. The transaction closed in November 2017.

Peekay, based in Auburn, WA, is an operator of sexual health and wellness retail locations in the Southern and Western United States. The Company operates over forty stores under four banners including Condom Revolution, Lovers, A Touch of Romance and Christal’s. Peekay’s bespoke retail experience features a curated collection of products designed to promote intimacy and sexual wellness

Through a combination of acquisitions and capital investments, the company developed a profitable and industry-leading retail network. However, its acquisitive strategy relied on a highly levered and unsustainable capital structure. Peekay engaged in several unsuccessful restructuring initiatives and retained SSG in November 2016 to explore strategic alternatives.

In August 2017, Peekay filed for Chapter 11 protection in the District of Delaware. SSG conducted a comprehensive marketing process which resulted in a wide range of potential strategic and financial buyers. While significant interest was expressed, the stalking horse credit bid submitted by the Term A Lenders was determined to be the highest and best price for substantially all of the company’s assets. SSG’s industry knowledge from prior transactions and experience with efficient Chapter 11 sale processes enabled Peekay to maximize the value of the assets.