Careismatic Brands has engaged restructuring advisers to address financial challenges, according to people familiar with the matter, as competitive pressure and deteriorating performance make it difficult for the medical apparel company to satisfy its debt obligations, WSJ Pro Bankruptcy reported. Careismatic, owned by private-equity firm Partners Group, has engaged financial adviser PJT Partners and legal counsel Kirkland & Ellis to explore options for its debt load, the people said. Partners Group acquired the company in 2021. At the time, it raised more than $800 million in loans to fund the acquisition. Careismatic, founded in 1995, bills itself as the world’s largest retailer of medical apparel, including products like hospital uniforms, scrubs and footwear. The Santa Monica, Calif.-based company has faced competition from Figs, an apparel retailer that entered the market in 2013. Moody’s downgraded Careismatic in October, citing deterioration in its operating performance, cash flow and credit metrics. The company’s sales have deteriorated due to intense competition and softening demand after the COVID-19 pandemic, according to the report.
