FullBeauty enters forbearance with asset-based, first-lien lenders

By Wendy Van Sickle

Columbus, Ohio, Nov. 9 – FullBeauty Brands entered into forbearance agreements with its asset-based lenders and first-lien lenders, the company announced in a press release Friday.

“The company and its advisers have been exploring solutions to strengthen the company's business, deleverage its balance sheet and achieve a more sustainable capital structure,” the release states.

FullBeauty said these efforts have been successful, resulting in an agreement in principle with its key stakeholders on the terms of a consensual transaction that will “significantly deleverage its balance sheet and contemplates payment of the company's trade partners in the ordinary course of business.”

FullBeauty expects to complete the transaction over the next few months and said it has adequate liquidity to meet its financial obligations to its vendors, suppliers and employees while investing in long-term growth.

It expects to continue making payments to these parties without interruption.

The company has retained AlixPartners as its financial adviser, as well as investment banker PJT Partners and legal counsel Kirkland & Ellis LLP.

FullBeauty Brands is a New York-based catalog retailer and online marketplace for plus-size consumers.

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