PE HUB Wire Highlights, 8.29.19


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

TPG receives bids for Wind River; GE Capital to sell PK AirFinance to Apollo, Athene Holding; HGGC announces promotions

We have big news in retail.

Just a day after discussing how culpable private equity is for the so-called “retail apocalypse,” another company is on the brink. Forever 21, the once-top teen fashion retailer, is preparing for a potential bankruptcy filing, Bloomberg is reporting. Forever 21’s focus has shifted to securing a potential DIP loan to help take it into Chapter 11, the story said.

Now, a Forever 21 bankruptcy doesn’t appear as devastating as say a Chapter 11 filing from JC Penney. But a Forever 21 bankruptcy would be problematic for the country’s mall owners, like Brookfield Property Partners or Simon Property Group, Bloomberg said. “Forever 21 is one of the biggest mall tenants still standing after a wave of bankruptcies in the retail sector,” the story said.

Lord & Taylor is also being sold to Le Tote Inc, a San Francisco-based retail service company, for about $100 million. Hudson’s Bay, the seller, will receive $74.95 million in cash upon the deal’s closing and about $25 million in two years, Reuters reported. Le Tote is backed by investors including Sway Ventures, Azure Capital PartnersFundersClub and Lerer Hippeau.

I’ve been told by several bankers that the retail bankruptcies are needed to clear out the non-performers. But it’s still sad. Losing Lord & Taylor’s flagship store last was rough on my shoe addiction.

DealsGE Capital is selling PK AirFinance to Apollo Global Management LLC and Athene Holding Ltd. Financial terms weren’t announced by GE said PK AirFinance’s $3.6 billion of financing receivables are being sold at a premium to book value. See our brief here.

Milana Vinn is reporting that TPG received bids for Wind River Systems, an internet-of-things software provider. There are some big names interested in Wind River. What’s interesting is that TPG doesn’t have a banker on this deal yet, but it’s in talks with one, the story said. The informal auction process was in response to inbound interest. Read Milana’s story here.

CONTINUE READING