Lifestyle brands collective Centric Brands has announced that it has entered into a restructuring support agreement with substantially all of the company’s secured lenders. As part of the agreement, the company has voluntarily filed for protection under Chapter 11.

“Today’s agreement marks the beginning of our next chapter as an even stronger company and builds upon our progress to date executing on our long-term strategy,” says Jason Rabin, chief executive officer, Centric Brands. “I am honored that Centric Brands’ lender group has such strong confidence in our team. Their partnership and support will enhance our ability to continue to grow our business, providing best-in-class design with an unmatched sourcing network, retail partnerships, industry expertise and deep relationships with licensors. The current crisis has significantly impacted companies across all sectors. The pandemic disrupted many of our wholesale accounts’ ordering and constrained our cash flow. However, we are confident that with added flexibility in our capital structure, we will be well-positioned for long-term success during this period and beyond. We thoroughly evaluated all possible strategic options to address this environment. After extensive review, we determined that partnering with our current lenders to pursue this path will result in a stronger financial position and more resources to support future growth, while allowing us to focus on serving key stakeholders.”

All of the company’s secured lenders, led by certain funds managed by Blackstone, Ares Management Corporation and HPS Investment Partners will aim to recapitalize the company, providing $435 million in debtor-in-possession financing and allow the company to operate without interruption throughout the restructuring process.

Additionally, the agreement contemplates an emergence from the process with a plan to reduce the company’s funded second lien indebtedness by approximately $700 million.