MAV Beauty Brands Inc. (TSX:MAV) et al., CCAA
MAV Beauty Brands Inc. (TSX:MAV) et al. (the “MAV Group”), Vaughan, Ontario-based hair and personal care marketing and distribution companies, obtained CCAA protection on November 14, listing approximately $133 million in liabilities. The MAV Group supplies its four independent brands - Marc Anthony, Cake Beauty, Renpure and The Mane Choice - to a variety of brick-and-mortar chains and e-commerce retailers, including Walmart, Shoppers Drug Mart, Target, Costco, Walgreens and Amazon. It has faced a number of challenges as a result of increased financing costs in light of rapidly accelerating interest rates, increased competition in the personal care industry, and disruption to retail sales following brick-and-mortar store closures and shifts in end-consumer purchasing preferences toward e-commerce and online platforms during the COVID-19 pandemic. The purpose of the CCAA proceeding is to stabilize the business, obtain additional liquidity, and implement a transaction with an affiliate of Nexus Capital Management which resulted from a pre-filing strategic review process. A&M was appointed monitor. Counsel is Stikeman Elliott for the MAV Group, Goodmans for the monitor, Osler for RBC (the DIP lender), Cassels for Nexus Capital Management, and Chaitons for the OSC.
By: Dina Milivojevic