Centric Brands, the fashion, beauty and lifestyle product maker, has filed for bankruptcy protection under Chapter 11 and revealed its intention to go private.
The holder of beauty and bathroom product licences for Disney, Nickelodeon, Hershey and Warner Brothers, among others, has entered into a Restructuring Support Agreement with the company’s secured lenders.
The agreement aims to reduce the company’s second lien indebtedness by approximately US$700m and strengthen its position for future growth.
Jason Rabin, CEO of Centric Brands, said: “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.”
Talking about the impact of the Covid-19 crisis, he added: “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.”
