![]() Sequential said it could consummate several value-maximizing brand sales over the months before the bankruptcy filing that helped pay down debt. Multiple waiver agreements were required to overcome defaults to its credit line. In late 2020 and early 2021, with assistance from Stifel, Sequential engaged in an overall marketing process to sell the company or the divestiture of one or more existing brands while also evaluating potential transactions, including raising new debt and/or equity financing. Nevertheless, Sequential continued to explore the sale of its assets while also evaluating all of the company’s brands and potential transactions.īy the fourth quarter of 2020, with the continuing decline in revenues, Sequential was close to breaching its financial covenants and began receiving waivers from its lenders starting in November 2020. In addition to affecting the company from an operational standpoint, the pandemic partially disrupted the company’s ability to market its assets fully.” DiSanto added, “The formal sale process, however, was launched in the first week of March 2020, just as the World Health Organization had declared the outbreak of COVID-19 as a global pandemic. to assist with the review.īy November 2019, the company explored a sale of its activewear division assets. In an affidavit filed with the Court, Lorraine DiSanto, Sequential’s CFO, said in Fall 2019, with revenue down compared to in prior years and having received unsolicited interest from third parties for the purchase of certain assets, it began to consider a broad strategic review focused on maximizing value. In June, reports arrived that Sequential was close to reaching a deal with lenders to file for bankruptcy protection to divest its portfolio of brands or to sell the company. Sequential is a brand management company that acquires and then licenses brands to wholesale and direct-to-retail partners. The bankruptcy petition listed total assets of $442.8 million and liabilities of $435.1 million. Bankruptcy Court for the District of Delaware. announced that it had started voluntary Chapter 11 proceedings in the U.S. In 2000, Galaxy acquired Apex Global Brands, which includes Hi-Tec, Magnum, Interceptor, Cherokee, and Tony Hawk. Licenses include And1 and Avia, London Fog and Justice. Galaxy, acquired by Gainline Capital Partners in early May, owns and licenses several footwear brands. Other brands owned by Sequential include Jessica Simpson, William Rast, Joe’s Jeans, and The Franklin Mint. Sequential’s active division also includes the SPRI line of fitness equipment and the Swisstech luggage line. Galaxy will serve as a stalking horse bidder to explore higher bids for the active segment as part of Sequential Brands’ bankruptcy filing. If you have received a notice and have any questions, you should contact Debtors’ counsel.Ĭole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.Sequential Brands has agreed to sell its active division brands, including Gaiam, Avia and And1, to Galaxy Universal for $333 million. We are posting this for informational purposes only. ![]() According to the board resolutions attached to the petition, the company will pursue the sale of all or substantially all of its assets under Section 363 of the Bankruptcy Code and will be obtaining $150 million in DIP financing.Ĭole Schotz does not represent the Debtors in this case. The company reports $442.8 million in assets and $435.1 million in liabilities. (NASDAQ:SQBG), together with its wholly-owned subsidiaries that own, manage and license a large-scale and diversified portfolio of consumer brands across multiple industries, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. On August 31, 2021, Sequential Brands Group, Inc.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |