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rue21 on the lookout for funding: Reuters
Posted on Monday, 12 February 2018 13:39
US clothing retailer rue21 is taking to the fundraising trail in a bid to generate cash after a disappointing Christmas season, people familiar with the situation told Reuters.
According to the sources, the company has appointed Piper Jaffray Companies to advise on the matter.
However, at this time it is not clear how much the firm hopes to raise or when it could close a deal and none of the companies involved have commented on the report.
rue21 filed for Chapter 11 bankruptcy protection in May of last year, saying at the time that it could be forced to close some locations.
The company subsequently emerged in September, having shut down 420 stores, leaving it with 758 shops spanning 45 US states.
According to Reuters’ report, the company had hoped to benefit from the traditionally busy Christmas period, but takings ultimately fell short of its expectations.
rue21 aims to provide casual and fashionable clothing for young people.
Prior to the bankruptcy filing, the company was owned by Apax Partners, which took its share of the business from 30.0 per cent to 100.0 per cent via a USD 1.10 billion injection in October 2013. That transaction saw KarpReilly and Grandeur Peak Global Advisors sell their holdings.
According to Zephyr, the M&A database published by Bureau van Dijk, there have already been two deals targeting US-headquartered clothing store operators announced worldwide since the start of 2018.
The most valuable of these was worth USD 65.00 million and took the form of a USD 65.00 million Series B round of funding by FIGS, which sells fashionable medical scrubs, lab coats and other apparel. Tulco was the sole investor in the round.
It was followed by a USD 17.00 million private placing, through which B Riley Financial picked up a 29.7 per cent shareholding in California-based Bebe Stores.
© Zephus Ltd