Founder and CEO Anastasia Soare has invested $225 million of her own money into Anastasia Beverly Hills following the exit of private equity firm TPG from a large portion of its stake in the company earlier this month.
The recapitalization transaction gives the brand “greater financial flexibility” in an “uncertain market environment,” according to a statement by Soare in the release announcing her investment.
The investment also significantly reduces the company’s debt, according to the release. Anastasia Beverly Hills was downgraded by Standard & Poor Global Ratings to a “D” in August due to a missed payment. Earlier this month, Bloomberg reported that TPG had taken a loss on a $600 million investment in the brand as part of a debt restructuring deal, reportedly bringing its stake down from 38 percent to 6 percent.
Soare will remain the CEO and majority owner of the company, and stated it has “continued strong support from our long-term lenders.”
Learn more:
Full Coverage: Can Tina Craig’s U Beauty Crack Luxury Beauty?; An Anastasia Beverly Hills Update
This week, I’m thinking about creators-turned-founders, a high-glam makeup brand’s money problems and Sue Nabi’s potential departure.