LONDON, Nov 17 (Reuters) - Bank lenders to German outdoor brand Jack Wolfskin have hired financial restructuring firm Houlihan Lokey and law firm Kirkland & Ellis to advise on the restructuring of its 365m debt, sources close to the deal said.
The company, owned by private equity firm Blackstone, has already hired PJT Partners to advise on a potential debt restructuring following news that next year’s earnings were likely to be half what was expected, at 30m as opposed to around 60m.
Deloitte is putting together an internal business review for the Blackstone-owned company, which is due to be published by November 30. Once that has been digested, creditors are likely to start tabling debt restructuring proposals in January, a source told LPC previously.
The company has been struggling with tough conditions in the retailer sector. It has also faced difficulties in China since it took direct control of the distribution of its products to around 700 Jack Wolfskin stores in the country in 2015.
In July 2015, Jack Wolfskin closed an amend and extend of its debt, which included a 75m capital injection from Blackstone.
Blackstone agreed to buy Jack Wolfskin in 2011 from Quadriga Capital and Barclays Private Equity, backed with 485m of debt. (Editing by Christopher Mangham)