Douglas - Deep Dive
E-Commerce 'Crown Jewels' underpin seniors
As part of 9fin's developing distressed and restructuring coverage, we will be producing a number of more detailed analysis pieces for selected credits on a trial basis.
Our first report is for Douglas - the German beauty products retailer.
- E-commerce ‘crown jewels’ providing downside protection
- Good company' within a 'bad company' dynamic
- Christmas trading is key, historically accounting for over 50% of EBITDA
- Could be the first company to test the new German Restructuring plan in 2021
- Liquidity is adequate - but potential for €200m of cash burn over next 5 quarters - additional €150m of new money would mitigate any concerns
- Recoveries for Senior Notes underpinned by 1) terms of any equitization 2) E-commerce growth and 3) stub valuation of bricks & mortar business
To request a copy please contact Chris Haffenden - Chris@9fin.com or Jack Griffiths - Jack@9fin.com