Situation

Following a period of rapid growth and a significant investment from a private equity fund in 2021, the Company experienced declining revenue and compressed margins as heightened scrutiny of the fast-fashion category, shifts away from core product categories, and liquidity-driven discounting pressured the business. With limited liquidity , the Company’s lenders and other stakeholders evaluated strategic alternatives, including a sale process and orderly wind-down of the existing borrower entities.

Engagement

In January 2026, G2 Capital Advisors (“G2”) was engaged in a dual role as both Chief Restructuring Officer and sell-side advisor. As CRO, G2 managed the Company’s daily liquidity, supported stakeholder communications, and crisis management.  G2 implemented cost reduction initiatives and stabilized the business during the sale process, while preparing for an orderly wind-down of the OldCo entities. As sell-side advisor, G2 ran an expedited marketing process, prepared buyer-facing materials, coordinated diligence, and worked with the Company, lenders, and legal advisors to evaluate and execute the most viable transaction path.

Outcome

In less than three months from the evaluation of strategic alternatives to closing, G2 helped complete an Article 9 sale of substantially all secured lender collateral. The transaction allowed the buyer to exit certain legacy liabilities and right-size operating expenses, thus accelerating the implementation of the operational restructuring plan. The buyer was a founder-led buyback of the majority of the business, with current lender capital supporting the minority position, preserving the brand and go-forward operating platform. The sale provided lenders with a faster, lower-cost path to maximize recovery relative to a more prolonged court-supervised process.