Rochelle Park, NJ – The DAK Group was selected as the investment bank and financial advisor to the Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of Seattle-based retailer Peekay Boutiques, Inc. Peekay is a public company which operates more than 45 boutiques selling lingerie and women’s wellness and sexual health products. The retail stores are located on the west coast and in the south, operating under the names of Christals, Lovers and ConRev.
Peekay was founded in the 1980’s by Phyllis Heppenstall and her daughter, Kris Butt. The company’s strategy focused on customer education and catering to women and couples. A private equity firm borrowed heavily in order to acquire the profitable Peekay in 2012, along with several other regional retailers, in an effort to build a national franchise. The company went public in 2015 but for years has been unable to service the debt burden placed on it by the acquirers.
On August 10, 2017, Peekay Boutiques, Inc. filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the District of Delaware. It is in joint administration with Peekay Acquisition, LLC.
The DAK Group team is led by Sheon Karol, Managing Director. Karol states “Peekay is unable to service its crushing debt obligations so the company’s balance sheet needs to be restructured. This would allow Peekay to be sold as an operationally profitable retailer, especially if the restructured company returns to the successful retail strategy employed by Phyllis and Kris. The FemTech industry as a whole is receiving increased interest from all types of investors and Peekay could be a profitable acquisition for the right buyer.”
The DAK Team also includes Ari Fuchs, Director, and Claudia Levine, Associate. Sheon Karol is a retail expert and the team has strong experience in the retail bankruptcy and M & A space.
The Committee selected Cullen and Dykman LLP as counsel, led by S. Jason Teele and Nicole Stefanelli, and Whiteford Taylor Preston, LLP as local counsel, led by Christopher Samis.
About The DAK Group
The DAK Group is a leading investment bank serving mid-market privately held businesses in the areas of mergers and acquisitions, business sale, financial restructuring, bankruptcy, capital advisory, valuations and fairness opinions. Since 1984, The DAK Group has executed hundreds of transactions across a wide range of industries, including food, industrial manufacturing and distribution, telecommunications and technology, business services, packaging, consumer products and healthcare. DAK offers a propriety process that allows clients to maximize the value of their business. The DAK Group is headquartered in Rochelle Park, NJ. www.dakgroup.com
