Centric Brands (CTRC) - Get Report said it had filed for protection from creditors under Chapter 11 of federal bankruptcy law and had secured $435 million of debtor-in-possession financing from numerous lenders.
The DIP financing will enable Centric Brands to continue operating through its restructuring.
Centric Brands is a brand collective that designs, sources, markets and sells products for licensed brands like Tommy Hilfiger and Nautica.
Centric Brands intends to exit bankruptcy as a private company while operating its business without interruption through the process.
"The current crisis has significantly impacted companies across all sectors," Chief Executive Jason Rabin said in a statement.
"The pandemic disrupted many of our wholesale accounts’ ordering and constrained our cash flow. However, we are confident that with added flexibility in our capital structure, we will be well-positioned for long-term success during this period and beyond."
To enable Centric to emerge from bankruptcy as a private company, the private-equity firm Blackstone (BX) - Get Report, one of the company's main lenders, will exchange a second-lien debt for equity interests in the reorganized company.
Additionally, the company's agreement reduces Centric's second-lien indebtedness by about $700 million, which the company says will also help reposition it once it exits reorganization.
Centric is the latest company in apparel and retail to file under the bankruptcy laws amid the coronavirus outbreak.
Last week J.C. Penney filed for Chapter 11 after it skipped two debt payments in the past month.
Collegiate prep style retailer J.Crew filed for bankruptcy less than two weeks ago followed a few days later by Neiman Marcus Group.
Centric Brands shares at last check were off 50% at 47 cents.
Editor Note: story has been updated to reflect that Centric is NOT the parent company of Tommy Hilfiger and Nautica as was previously reported.