Receives Debtor-in-Possession Loan Commitment to Support Operations Agreement Saves Thousands of Jobs
VIENNA, Va. – April 23, 2020 – Creative Hairdressers, Inc., a leading operator of salon brands including Hair Cuttery, BUBBLES and Salon Cielo, today announced an agreement to sell its assets to HC Salon Holdings, Inc., an affiliate of Tacit Salon Holdings, LLC, along with a plan designed to significantly reduce its debt obligations and establish a sound financial platform for long-term growth. The company plans to re-open its salons when local and state authorities determine it is safe for employees and customers to return in wake of the COVID-19 crisis.
Creative Hairdressers, Inc. has entered into an asset purchase agreement with HC Salon Holdings, Inc., an affiliate of Tacit Salon Holdings, LLC, to acquire substantially all its assets, including the majority of its salon locations. In addition, as the senior secured lender, HC Salon Holdings, Inc., an affiliate of Tacit Salon Holdings, LLC, has agreed to provide the Company with debtor-in-possession financing that will allow the Company to continue operations, effectuate the sale process and fund operating expenses, including its payroll and other obligations to employees.
“We are extremely pleased to have reached a positive outcome that enables us to pay our talented salon professionals, field leaders and resource center associates, and then reopen our doors and save thousands of jobs for our outstanding salon staff,” said Phil Horvath, President of Creative Hairdressers, Inc. “These have been unprecedented and trying times for everyone, and especially for our industry. Our new financial partners are excited about the long-term potential in our industry and our ability to rebound post-crisis. We look forward to re-opening our doors and building a stronger future for our business.”
To implement the plan, Creative Hairdressers, Inc. and its affiliate Ratner Companies, L.C., today filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Maryland. The Company does not expect the filing will have a meaningful impact on its day-to-day business once its salons are able to re-open and expects to complete the sale process within 45 days.
“We’re happy to support Creative Hairdressers and its thousands of salon professionals as the company emerges from the COVID-19 crisis in a stronger financial position,” stated Azhar Quader, Chairman of Tacit Salon Holdings, LLC. “Hair salons are an important contributor to the fabric of life in communities across the country. We’re focused on saving jobs for salon professionals and building a strong, financially healthy company. We look forward to having Creative Hairdressers’ talented stylists provide excellent service to their customers for many years to come.”
Creative Hairdressers, Inc. is represented by Shapiro Sher Guinot & Sandler. Carl Marks Advisors is acting as strategic financial advisor to assist the Company in the process. HC Salon Holdings, Inc. is represented by DLA Piper LLP (US).
About Creative Hairdressers, Inc.
Creative Hairdressers, Inc. operates over 750 salons nationwide under the trade names Hair Cuttery, BUBBLES, and Salon Cielo. The company began in 1974 to create a quality whole family salon where stylists could make a good living. Today, the family of salons continues to share this commitment with a transparent, people-first culture that offers the best career trajectory in the industry for salon professionals, field leaders and corporate employees. More information is available at www.ratnerco.com.
About Tacit Salon Holdings, LLC
Tacit Salon Holdings, LLC (“TSH”), a socially responsible investment platform committed to sustainability, gender equality and diversity inclusion, is a holding company formed to acquire salon platforms in the $47 billion hair care industry in the United States. TSH provides capital and infrastructure and teams up with industry leaders to acquire, reposition, and grow hair care assets in a socially responsible way.
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