FullBeauty Brands emerges from bankruptcy case four days after filing

By Caroline Salls

Pittsburgh, Feb. 7 – FullBeauty Brands Holdings Corp. announced Thursday that it has emerged from its Chapter 11 restructuring with roughly $35 million in new financing after eliminating $900 million of debt.

As previously reported, FullBeauty’s pre-packaged plan of reorganization was confirmed on Feb. 5 by the U.S. Bankruptcy Court for the Southern District of New York.

According to a news release, the company’s largest shareholders are now investment vehicles managed or advised by the Goldman Sachs Merchant Banking Division and funds managed by Oaktree Capital Management, LP.

Affiliates of FullBeauty’s equity sponsors, Apax Partners and Charlesbank Capital Partners, will receive minority stakes in exchange for providing advisory services to the reorganized company.

Other holders of the ocmpany’s pre-bankruptcy first-in, last-out loan claims, its first-lien claims and its second-lien claims also hold stakes in reorganized FullBeauty.

General unsecured claims will be reinstated and holders of “other” secured claims will be paid in full in cash.

Existing interests will be cancelled, and holders will receive no distribution.

The company’s new asset-based loan will be provided by Citizens Bank, NA.

FullBeauty said its turnaround, which started in early 2018 with the arrival of a new senior management team headed by chief executive officer Emilie Arel, will accelerate following the completion of its restructuring.

“Through the restructuring, we have strengthened our balance sheet and gained additional financial flexibility,” Arel said in the release.

“Going forward, FullBeauty is well-positioned to create sustainable value for our stakeholders, including customers, employees, suppliers, business partners and lenders.”

During the restructuring process, Kirkland & Ellis LLP, PJT Partners, and AlixPartners served as advisers to the company.

FullBeauty Brands is a New York-based catalog retailer and online marketplace for plus-size consumers. The company filed bankruptcy on Feb. 3 under Chapter 11 case number 19-22185.

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