The creditors of footwear retailer Toms Shoes have agreed to take over the company in an out-of-court debt restructuring.
According to a Reuters report, Toms Shoes chief executive Jim Alling sent a letter to employees on December 27 stating the company had signed a deal transferring ownership from founder Blake Mycoskie to investors led by Jefferies Financial Group Inc., Nexus Capital Management LP and Brookfield Asset Management Inc.
The deal includes restructuring a $300 million loan due next year. The new owners will also be investing $35 million in the business, providing debt relief to the company.
“Combined with an enhanced capital structure, this funding will enable Toms to further invest in our promising growth areas and continue our commitment to giving, which have been initiated and supported by Bain Capital and Blake over the past five years,” Alling stated in the letter.
Bain acquired a 50 per cent stake in Toms Shoes five years ago, when the company was valued at about $625 million. Mycoskie owned the remainder. It has not yet been made clear if Mycoskie will continue to have a role with the company.
Toms was founded in 2006 by Mycoskie.