FullBeauty Brands Inc. said yesterday that it will file for bankruptcy in New York in late January, having reached a deal with most lenders to hand control to a group of creditors led by Oaktree Capital Management in exchange for slashing $900 million in debt, WSJ Pro Bankruptcy. The New York-based apparel retailer targeting plus-size women has struggled with competition from Amazon.com Inc. and mainstream apparel companies that increasingly cater to its core customers. Lenders including Oaktree have been in talks with FullBeauty and its private-equity owners for months to take control of the company and wipe out most of its $1.2 billion in debt. Almost all of FullBeauty’s lenders support the plan, and it expects its stay in bankruptcy to be short, the company said. FullBeauty’s private-equity owners Apax Partners LLP and Charlesbank Capital Partners have also agreed to hand over control to the lenders. Some of FullBeauty’s lenders are providing a new $30 million loan to bolster its liquidity, the company said.
