e the restructuring, Careismatic Brands has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The RSA outlines a comprehensive agreement that will reduce the Company’s funded debt by approximately $305 million and provide significant additional liquidity to support its operations and continued investment in the business. The agreement also contemplates a debt-for-equity swap that will provide Careismatic Brands with a sustainable capital structure to support its long-term growth initiatives.
Greg Segall, Chief Executive Officer of CBI, expressed confidence in the company’s ability to emerge from the restructuring as a stronger and more competitive business. “This financial restructuring is a significant milestone for Careismatic Brands and represents a proactive and strategic initiative to position the company for long-term success. We believe that by significantly reducing our debt and enhancing our liquidity, we will be better equipped to navigate the challenges facing the retail and healthcare industries and capitalize on growth opportunities in the future,” said Segall.
The restructuring will not have any impact on the company’s daily operations or its ability to deliver high-quality products and services to its customers. Careismatic Brands remains fully committed to maintaining its strong relationships with customers, suppliers, and employees throughout the process.
Careismatic Brands is the parent company of well-known medical apparel brands such as Cherokee Uniforms, Dickies Medical, and others. The company’s products are worn by millions of healthcare professionals around the world, and its commitment to quality, innovation, and customer satisfaction has made it a leader in the industry.
As part of the restructuring process, Careismatic Brands has also secured a commitment for $35 million in new financing from its current lenders, which will provide additional liquidity to support ongoing operations. This financing, combined with the reduction in debt and the proposed equity infusion, will ensure that the company has the resources it needs to continue its day-to-day business activities without interruption.
The Company has also filed a series of first day motions with the Bankruptcy Court to ensure that it can continue to operate in the ordinary course of business during the restructuring process. These motions include requests for authority to continue paying employee wages and benefits, honor customer programs, and pay suppliers for goods and services provided before and after the filing.
Careismatic Brands is confident that the restructuring process will be completed as quickly and efficiently as possible, and the company will emerge from Chapter 11 with a stronger financial foundation and a clear path forward. The support of its lenders, equity sponsor, and other stakeholders is a crucial component of this process, and Careismatic Brands is grateful for their ongoing support and commitment to the company’s long-term success.
As Careismatic Brands works through the restructuring process, it remains focused on its mission of providing high-quality, innovative medical apparel to healthcare professionals around the world. The company’s dedication to excellence, customer satisfaction, and industry leadership will continue to drive its operations and guide its decisions as it moves forward into the future.
Careismatic Brands is confident that, once the Chapter 11 process is complete, the company will be well-positioned for long-term success and sustainable growth. With a strengthened balance sheet, enhanced liquidity, and continued support from its stakeholders, Careismatic Brands is prepared to continue delivering exceptional products and services to its customers for many years to come.
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