Chic

Chic by H.I.S.

Business Description

Chic by H.I.S. designed, manufactured and marketed moderately priced, basic style, cotton denim jeans, casual pants and shorts for women, girls, men and boys, which were sold throughout the United States principally through mass merchandisers and in Germany.

Background

Chic by H.I.S.’s capital structure was overleveraged, resulting in debt service that was more than the Company could handle. In addition, the Company was unable to capitalize on market opportunities that would create additional value. A debt restructuring that encompassed debt forgiveness, debt to equity conversion and an IPO was necessary to avoid a bankruptcy that would have driven customers away and rendered the outstanding debt of little value.

Solution

A principal of Carter Morse & Mathias acted as a managing underwriter on Chic by H.I.S’s IPO.