Goodmans LLP acts for Alvarez & Marsal Canada Inc. (“A&M”) in respect of MAV Beauty Brands Inc. (together with its subsidiaries, the “MAV Group” or the “Company”), a publicly traded global hair care and personal care company focused on managing a diversified portfolio of independent brands, in connection with the Company’s restructuring proceedings.

On November 14, 2023, the MAV Group sought and obtained an Initial Order under the Companies’ Creditors Arrangement Act (“CCAA”) appointing A&M as monitor of the Company (the "Monitor") and granting creditor protection to the Company in order to facilitate a restructuring through a going-concern sale of substantially all of the assets of the Company. In connection with the CCAA proceedings, the Company entered into an asset purchase agreement with an affiliate of Nexus Capital Management LP, a Los Angeles-based private equity firm ("Nexus"), pursuant to which Nexus agreed to acquire substantially all of the assets and business of the Company (the "Transaction"). On November 24, 2023, the MAV Group obtained court approval of the Transaction.

The Transaction and CCAA proceedings were the conclusion of a previously announced strategic review process to identify, review and evaluate potential strategic alternatives. The Company had experienced continuing declines in operating performance as a result of, among other things, net product distribution losses with the Company’s retail customers and external pressures, including increased operating costs in light of rapidly accelerating interest rates, competition in the personal care industry generally, and the disruption to retail sales as a result of store closures and shifts in end-consumer preferences toward e-commerce and online platforms during the COVID-19 pandemic. Given the Company's significant existing debt, increased costs and interests rates, a refinancing or amendment of the Company's existing debt was not feasible without a reorganization of the Company's current capital structure. While the Company made significant efforts to address and improve its performance, it became increasingly apparent during the course of the strategic review process that, absent the legal protection afforded through the CCAA proceedings, the Company's cash position would continue to deteriorate.

Concurrently with the commencement of the CCAA proceedings, the Company obtained an aggregate of US$3.9 million in debtor-in-possession financing from certain of the Company’s existing senior secured lenders to provide working capital for the Company’s operations and to fund the CCAA proceedings and the implementation of the Transaction.  

The Transaction closed on December 8, 2023.
Goodmans continues to act as counsel to the Monitor while the Monitor assists the Company with post-closing matters and the winding up of the CCAA proceedings.