Centric Brands files for protection under Bankruptcy Code

Centric Brands Inc, a leading lifestyle brand that designs, sources, markets and sells apparel and accessories, has voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division. Meanwhile, the company will continue operating ordinarily.

 

Centric Brands Inc, a leading lifestyle brand that designs, sources, markets and sells apparel and accessories, has voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division. Meanwhile, the company will continue operating ordinarily.#

The New York-based company has entered into a Restructuring Support Agreement (RSA) with substantially all of its secured lenders, led by certain funds managed by Blackstone, Ares Management Corporation, and HPS Investment Partners, to recapitalise the company, provide $435 million in debtor-in-possession financing and allow the company to operate without interruption throughout the restructuring process.

 

Centric Brands Inc, a leading lifestyle brand that designs, sources, markets and sells apparel and accessories, has voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division. Meanwhile, the company will continue operating ordinarily.#

Additionally, the RSA contemplates a timely emergence from the process with a plan to substantially reduce the company’s funded second lien indebtedness by approximately $700 million, thereby positioning the business for future growth and success. The filing under Chapter 11 is part of the RSA.

 

Centric Brands Inc, a leading lifestyle brand that designs, sources, markets and sells apparel and accessories, has voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division. Meanwhile, the company will continue operating ordinarily.#

Meanwhile, Centric Brands intends to continue operating in the ordinary course. The debtor-in-possession financing secured enables the company to continue to meet its financial obligations throughout the process to employees, licensors, suppliers, and vendors. Upon completion, the company plans to emerge from the reorganisation as a private company, under the supportive ownership of its current lenders.

 

Centric Brands Inc, a leading lifestyle brand that designs, sources, markets and sells apparel and accessories, has voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division. Meanwhile, the company will continue operating ordinarily.#

“Today’s agreement marks the beginning of our next chapter as an even stronger company and builds upon our progress to date executing on our long-term strategy. I am honoured that Centric Brands’ lender group has such strong confidence in our team. Their partnership and support will enhance our ability to continue to grow our business, providing best-in-class design with an unmatched sourcing network, retail partnerships, industry expertise, and deep relationships with licensors,” said Jason Rabin, CEO of Centric Brands.

 

Centric Brands Inc, a leading lifestyle brand that designs, sources, markets and sells apparel and accessories, has voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division. Meanwhile, the company will continue operating ordinarily.#

“The current crisis has significantly impacted companies across all sectors. The pandemic disrupted many of our wholesale accounts’ ordering and constrained our cash flow. However, we are confident that with added flexibility in our capital structure, we will be well-positioned for long-term success during this period and beyond. We thoroughly evaluated all possible strategic options to address this environment. After extensive review, we determined that partnering with our current lenders to pursue this path will result in a stronger financial position and more resources to support future growth, while allowing us to focus on serving key stakeholders,” Rabin added.

 

Centric Brands Inc, a leading lifestyle brand that designs, sources, markets and sells apparel and accessories, has voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division. Meanwhile, the company will continue operating ordinarily.#

Under the terms of the RSA, Centric Brands expects to emerge from Chapter 11 as a private company. Blackstone will exchange second lien debt for equity interests in the reorganised company. Existing senior lenders Ares and HPS will retain their senior loan positions and will receive equity interests in the reorganised company.

 

Centric Brands Inc, a leading lifestyle brand that designs, sources, markets and sells apparel and accessories, has voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division. Meanwhile, the company will continue operating ordinarily.#