Dividend Recrap?
Two weeks ago we ran a blind item asking which PE-owned retail business was about to file for Chapter 11. Certainly the answer could have been “half of them,” but we gave the hint that this company’s sponsor is getting used to this sort of thing. That company finally filed yesterday: It was Anchor Blue Retail Group, backed by Sun Capital Partners. For those of you counting, that’s Sun Capital’s seventh company to go under this year. It had six bankruptcies last year. Of course, the firm’s response to this number is that Sun Capital pays so little for its acquisitions of struggling companies that the performance of its funds is not adversely affected by the bankruptcies. Well, this situation is no exception. Sun Capital actually made money on its investment in the now-bankrupt Anchor Blue Retail Group.
