Plus-size apparel firm FullBeauty filed a pre-packaged Chapter 11 petition on Monday, and a day later exited bankruptcy proceedings.
The company said on Thursday its successful emergence gives it $35 million in new financing after it eliminated $900 million of debt. The largest shareholders after the reorganization are investment funds managed or advised by Goldman Sachs Merchant Banking and funds managed by Oaktree Capital Management. Private equity firms Apax Partners and Charlesbank Capital Partners, the equity sponsors, now own minority stakes in the company, along with first and second lien claim holders.
FullBeauty said last month that it had negotiated an agreement with its lenders to restructure its balance sheet. Before the restructuring, the company had a debt load of $1.2 billion, and in November missed an interest payment on a $345 million loan. The company has a new asset-based loan from Citizens Bank N.A.
Emilie Arel, chief executive officer, said, “Through the restructuring, we have strengthened our balance sheet and gained additional financial flexibility.”
The company owns the brands Roaman’s, Jessica London, Woman Within, King Size and Brylane Home, among others. It operates as a direct-to-consumer e-tailer, and it has a catalog business, both of which cater to women to wear size 12 and up.
“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,” Arel said.
The company’s competitors include start-ups Dia&Co. and Universal Standard. They also include Amazon and Walmart, which is making a bigger push into the plus-size market. Last year the mass discounter said it was buying plus-size brand Eloquii.