Beauty Store Business magazine - January, 2019

Beauty Brands Files Chapter 11

This week, Beauty Brands announced that it has filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

Concurrently, the company announced that it entered into an asset purchase agreement with Hilco Merchant Resources for a sale of its operating assets. The ultimate outcome of the filing and any asset sale is subject to the oversight and approval of the Bankruptcy Court.

On December 19, 2018, Beauty Brands announced it was closing 25 stores. Hilco will liquidate the inventory of those stores and the company will continue to operate 33 stores, including all stores in the Kansas City and St. Louis metro areas while it pursues the sale of its operating assets.

“As we move through the process, it will be business as usual at our 33 stores that remain open as we pursue a sale transaction,” said Caryn Lerner, CEO of Beauty Brands. “Our objective is to complete a sale of our 33 stores and emerge from Chapter 11 in a stronger position and move forward as a successful brand,"

Further information on the chapter 11 filing and asset sale process for Beauty Brands is available by visiting donlinrecano.com/beautybrands, which will be updated as new information becomes available.