Dec 8 (Reuters) - American Laser Centers LLC has filed for bankruptcy protection along with its parent, as a weak economy dampened demand for its laser hair removal treatments leading to cash constraints, court documents showed.
ALC Holdings LLC, the parent of American Laser Centers, said in a court filing that as part of the restructuring process it was seeking to sell the company’s business and assets.
ALC Holdings has engaged SSG Capital advisors as its investment banker to market the business to potential buyers.
Besides weak demand, the company said the business was also hampered by high turnover in senior management and resulting frequent changes in marketing and operational strategy.
The company said the entities “have been operating with an overleveraged balance sheet, which caused numerous events of default under their credit facilities”.
As efforts to sell the business did not materialise in due course and also because of continuing cash constraints, ALC said the best course of action for the company would be to file for bankruptcy protection and to seek a buyer through a court administered process.
American Laser Centers listed estimated liabilities of $100-$500 million and assets of $50-$100 million, according to court filing. The company employ about 1,263 employees and none of them are unionised.
The case is: American Laser Centers LLC, Case No. 11-13853/13854, U.S. Bankruptcy Court, District of Delware.