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.

Key takeaways:

- 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