Centric Brands exits Chapter 11 bankruptcy
Centric Brands has completed its financial restructuring and emerged from bankruptcy protection.
The company — which designs, sources, markets and sells products for more than 100 brands under licenses that include kids’ apparel for Tommy Hilfger, Disney, Calvin Klein and Nautica and accessories for Kate Spade, Jessica Simpson, Timberland, Michael Kors and others — has completed its financial restructuring and emerged from Chapter 11. Centric Brands, which also operates some 96 stores under banners that include Robert Graham and BCBG, has reduced its debt by roughly $700 million, leaving the bankruptcy process with a “stronger capital structure,” as well as access to “substantial” cash and liquidity.
Under the restructuring, Centric Brands has become a private entity, with financial backing from majority sponsor Blackstone, Ares Management Corp. and HPS Investment Partners.
Centric Brands filed for bankruptcy in May.
“The completion of this reorganization marks a major milestone for our company, stated Centric Brands CEO Jason Rabin. “Throughout this process, we operated seamlessly without interruption and remained focused on serving our valued partners. 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.”