Ascena Retail Group plans to sell Catherines to FULLBEAUTY Brands for $40.8 million, according to a bankruptcy court filing. FullBeauty’s winning bid is more than twice the original $16 million offer initially placed by City Chic Collective.
FullBeauty itself sped through bankruptcy in less than 24 hours last year, coming up with a plan to cut $900 million of its $1 billion debt to reduce interest payments and kickstart a turnaround. The retailer came under the control of Oaktree Capital Management, Clearlake Capital Group and Goldman Sachs & Co. as part of the restructuring process.
City Chic remains the backup bidder and will acquire Catherines for $39.9 million if this deal falls through. The company also acquired the e-Commerce business of Avenue Stores LLC for more than $17.2 million last year, according to The Wall Street Journal.