Overview
In a true Firm-wide effort, Barack Ferrazzano represented Brow Art Management (“Brow Art”) in its acquisition of the operations and assets of Brow Art 23 ("BA23"). BA23 — the nations’ largest specialty retailer in the eyebrow threading industry — and its affiliated entities filed for Chapter 11 bankruptcy in January 2019. Once it obtained approval from the bankruptcy court, BA23 launched a formal sales process under section 363 of the Bankruptcy Code, to sell all of its assets including 169 company-owned and franchised stores, with $23.7 million in revenues and $2.7 million in adjusted EBITDA (in 2018, adjusted for closed stores and non-recurring professional fees). After the court-approved auction and sale process closed, the Firm’s client emerged as an interested party, but was prevented from participating in the sale. The Firm, however, positioned Brow Art as a strong and viable bidder, causing BA23 to re-establish negotiations after the original winning bidder was unable to timely close. The Firm negotiated improved terms for Brow Art's renewed bid and ensured the necessary court authority to proceed.
This opportunity for Brow Art required quick collaboration and an immense amount of work across many Barack Ferrazzano practice groups. The Litigation Group became involved and brought support when Brow Art's original bid was contested, working with the Bankruptcy & Creditor Rights Group to obtain bankruptcy court approval of its bid and close the sale. The Corporate & Securities Group was responsible for the formation of the new post-sale entity for the combined companies, and the Compensation & Employment Group handled all employment issues. Upon closing, BA23 remains a going concern, saving jobs and positioning it for future growth.
Barack Ferrazzano represented Brow Art Management with a team lead by Bankruptcy & Creditor Rights co-chair Nathan Q. Rugg. Corporate matters were handled by partner Matthew A. Jackson, litigation support was provided by partner Jack Snyder, and Compensation & Employment co-chair Andrew K. Strimaitis tackled all executive compensation issues.
To read more about this transaction, visit: https://www.prweb.com/releases/ravinia_capital_completes_sale_of_perfect_brow_art_inc_through_a_chapter_11_section_363_bankruptcy_sale_process/prweb16714724.htm