- Huw Hughes |
Centric Brands, the licensee for brands such as Tommy Hilfiger and Under Armour, has completed its financial restructuring and emerged from Chapter 11 bankruptcy under private equity ownership.
The company, whose portfolio of own brands includes Hudson, Robert Graham, Swims and Avirex, said it has substantially reduced its funded indebtedness by around 700 million dollars and is now “well-capitalized with access to substantial cash and liquidity”.
Centric Brands is now a private entity backed by partners Blackstone, Ares Management Corporation, and HPS Investment Partners.
Centric Brands completes financial restructuring
“The completion of this reorganization marks a major milestone for our Company. Throughout this process, we operated seamlessly without interruption and remained focused on serving our valued partners,” Centric Brands CEO Jason Rabin said in a statement.
“We maintained excellent relationships with licensors and our supply chain - and ultimately delivered to our retailers. We now emerge with an optimized business structure, supportive partners, a qualified and engaged board, and strengthened financials. We look forward to maximizing our potential and creating opportunities for future growth.
Centric Brands filed for Chapter 11 back in May, joining a list of other big-name US retailers to file for bankruptcy during the Covid-19 pandemic, including J.Crew, JCPenney, Lord & Taylor and Neiman Marcus.
Rabin continued: “While the impact of Covid-19 has been challenging for our industry, we are very well positioned to navigate the current environment. We will continue leading the industry in our core segments, including kids, accessories, and men’s and women’s denim and lifestyle. With Blackstone’s support, an improved capital structure, strategic relationships, and industry expertise - we are built for a strong future ahead.”
Photo credit: Robert Graham, Facebook