Jack Wolfskin lenders set to finalise debt restructuring plan

Lenders to German outdoor brand Jack Wolfskin are close to finalising a restructuring plan for the company's 365m debt, two sources close to the situation said.

An M&A process for the company is also starting this week, with final bids due by the end of February, the sources said.

The dual track approach is common in debt restructuring situations, with the M&A process an effective way of getting a value for the company involved.

The lender-led restructuring plan is likely to involve a debt for equity swap that would see the company being taken over by these lenders.

Jack Wolfskin's private equity owner Blackstone has so far made no move to put forward a debt restructuring plan of its own.

In January Jack Wolfskin agreed a circa six-month waiver with its lenders to give it time to agree a restructuring deal.

PJT Partners is advising the company on the restructuring, while lenders have hired Houlihan Lokey and law firm Kirkland & Ellis.

The company has been struggling with tough conditions in the retailer sector. It has also faced difficulties in China since it took direct control of the distribution of its products to around 700 Jack Wolfskin stores in the country in 2015.

In July 2015 it closed an amend and extend of its debt, which included a 75m capital injection from Blackstone.

Blackstone agreed to buy Jack Wolfskin in 2011 from Quadriga Capital and Barclays Private Equity, backed with 485m of debt.