Rockport signs on restructuring advisors in ongoing search for balance sheet solution

02 May 2018
 
 
The Rockport Group is working with Alvarez & Marsal and law firm Richards Layton & Finger as the footwear retailer continues to evaluate options for a balance sheet fix, including a potential restructuring, according to two sources familiar with the matter.

The mandates complement the company's engagement of Houlihan Lokey late last year to explore strategic alternatives. The push for such a review came soon after debtholder Crescent Capital Group took ownership of Rockport from sponsor Berkshire Partners, Reuters reported back in December. 

The retailer sent out books in March, and is now negotiating with two finalist bidders, a third source said.

The company has around USD 200m in total debt, the third source continued. Included in the debt stack is USD 60m in Citizens Bank-led senior secured credit facilities and an investment totaling USD 29.3m from Corporate Capital Trust (CCT). Over the last year, CCT has marked down its position in Rockport multiple times bringing it to 60.6 as of 31 December 2017 from 96 at the end of 2016, and also changed it from a 9.5% loan to a 15% PIK loan due 2022 in the same period, according to its SEC filings.

The Newton, Massachusetts-based footwear company was a part of Adidas Group until its acquisition by Berkshire and New Balance Holdings in 2015. Rockport designs, markets and sells footwear with distribution in independent, online and department stores. Its portfolio of men’s and women’s brands, includes Rockport, Cobb Hill, Aravon and Dunham.

Representatives from Rockport, Crescent, A&M and Richards did not respond to requests for comment. CCT declined comment.