Daily News: February 11, 2019

Citizens Provides $35MM New Financing for FULLBEAUTY Chapter 11 Exit


Plus-size beauty brand FULLBEAUTY Brands successfully emerged from its Chapter 11 restructuring with approximately $35 million in new financing after eliminating approximately $900 million of debt. The asset-based loan was provided by Citizens Bank.

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. 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 turnaround, which started in early 2018 with the arrival of a new senior management team headed by CEO 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.

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

Kirkland & Ellis, PJT Partners and AlixPartners served as advisors to FULBEAUTY during the restructuring process. 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.