Brentwood Associates-Backed Soft Surroundings Completes Dividend Recapitalization, Continues Nationwide Retail Expansion

New credit facility supports dividend recapitalization and increased capacity for growth

LOS ANGELES--()--Brentwood Associates, a leading consumer-focused private equity investment firm, announced that Soft Surroundings, LLC (“Soft Surroundings”), a portfolio company, has completed a dividend recapitalization. The dividend was financed through an expansion of the existing credit facility. As part of the transaction, Soft Surroundings has increased its debt capacity to accelerate its national retail store rollout.

Founded in 1999 by the current executive team of Robin Sheldon, Tom Wilcher and Grant Williams, St. Louis-based Soft Surroundings is a unique, multi-channel lifestyle brand, marketing through its print, digital and social media channels as well as a national footprint of 28 stores. The company offers soft, unique and easy-to-wear clothing, well-priced luxury bedding and state-of-the-art beauty and fragrance products.

Roger Goddu, chairman of the Soft Surroundings board and a partner at Brentwood Associates, commented, “We are thrilled with Soft Surroundings’ outstanding operating results. The company’s continued success in retail as measured by both unit and same-store sales growth is a direct result of the hard work and dedication of the Soft Surroundings management team. We could not be more enthusiastic about the company’s prospects.”

“Exceptional earnings growth, and a strong partnership with our supportive lenders, has allowed the company to return a significant portion of the invested capital through a dividend recapitalization,” added Eric Reiter, a partner with Brentwood Associates.

Soft Surroundings is in the midst of a nationwide store expansion strategy, and the new debt financing includes a designated facility to fund future store openings. The company opened 11 new stores in 2015 and has identified over 15 locations for 2016.

CEO Tom Wilcher explained, “Significant investments in our digital and retail channels are providing our guests with a unique and compelling shopping experience. Soft Surroundings’ stores are designed to promote interaction between the brand and our customers, and we could not be more pleased with the results.”

The financing for the Soft Surroundings recapitalization was provided by CIT Bank, N.A.; Zions First National Bank; KeyBank National Association; Bank of America Merrill Lynch; and Banc of California.

About Soft Surroundings
Founded in 1999 and headquartered in St. Louis, Missouri, Soft Surroundings is a leading multi-channel marketer and aspirational lifestyle brand offering unique solutions to today’s active woman who has tremendous demands on her time and craves interludes of comfort, romance and relaxation in her life. The company’s product offering consists of soft, unique and easy-to-wear clothing, well-priced luxury bedding and state-of-the-art beauty and fragrance products. Soft Surroundings reaches its customer through its print, digital and social media channels as well as a national footprint of 28 stores.

About Brentwood Associates
Brentwood Associates is a leading consumer-focused private equity investment firm with over $1.4 billion of capital under management and a 30-year history of investing in leading middle-market growth companies. Brentwood focuses on investments in growing businesses where it is able to leverage its extensive experience in areas such as: specialty retail; branded consumer products; consumer services; direct marketing, including direct mail and e-commerce; education; health and wellness; and restaurants. Since 1984, Brentwood's dedicated private equity team has invested in 49 portfolio companies with an aggregate transaction value of over $6 billion. With significant experience in both investing and brand building, Brentwood is a value-added partner with entrepreneurs and senior management teams building world-class companies. For more information about Brentwood, please visit www.brentwood.com.

Contacts

Brentwood Associates
Matt Whelan, CFO
(310) 477-6611

Release Summary

Brentwood Associates, a leading consumer-focused private equity investment firm, announced that Soft Surroundings, LLC, a portfolio company, has completed a dividend recapitalization.

Contacts

Brentwood Associates
Matt Whelan, CFO
(310) 477-6611