After flirting with a public stock offering and trying to catch the eye of many potential buyers, the 46-store “sexual wellness” retailer Peekay Boutiques filed for chapter 11 protection to clear the way for a sale, the Seattle Times reported today. The chain, founded in 1982 by Phyliss Heppenstall as a family business, has been owned since 2012 by private equity investors who borrowed heavily to acquire several regional retailers in hopes of building a national franchise. It does business under four names: Christals, Lovers, ConRev and A Touch of Romance. The company’s debts to its primary lenders, originally $38.2 million, have since grown through unpaid interest and fees to nearly $52 million, according to the chapter 11 filing by Peekay Acquisition in bankruptcy court in Delaware. The owners of the various retailers that were acquired also provided seller financing totalling $12.7 million, which has grown to $19 million due to unpaid interest.
