Sabon Holdings, LLC

Case Highlights

• DSI analyzed retail store activity and worked with management to close underperforming stores
• DSI worked with management to consolidate inventory, reduce costs associated with the retail stores and renegotiate leases
• Reduced lease costs by 50% on average

Case Narrative

Sabon Holdings, LLC is the US subsidiary of Sabon International, in turn a subsidiary of Yves Rocher, a worldwide cosmetics and beauty company founded in 1965, France. Sabon engaged a member of DSI to be the Chief Restructuring Officer as it sought to reorganize under Chapter 11 bankruptcy. At the outset of the bankruptcy, Sabon had nine retail stores, wholesale customers and a significant internet presence in the United States. In the years leading up to the bankruptcy, the change in consumer habits weakened the retail market and the in-store sales suffered. Throughout the bankruptcy, the CRO, working with company management, sought to consolidate inventory, reduce costs associated with the retail stores and increase distribution to creditors. To this end, DSI worked with management and was able to close underperforming stores and renegotiated existing leases on the remaining four stores. Savings on the renegotiated leases was nearly $3 million for the remaining leases, reducing individual lease costs from 35% to 80% on individual leases. In addition, claims with international headquarters and vendors were reduced by over $10 million. All of this led to a distribution of nearly 20 cents to all general, unsecured creditors along with a thriving re-organized debtor poised for future growth.