DISTRESSED DAILY: Careismatic Brands Seeks Supply Chain Overhaul

Medical scrubs and uniform manufacturer Careismatic Brands is seeing its cash flow dented as it faces lower demand, higher costs and an expensive lawsuit against a rival.

Sales have fallen from pandemic highs, and non-product costs have risen roughly 30%, S&P Global Ratings analysts Gerald Phelan and Ryan O’Toole wrote in a note last week. The company is looking to cut costs and revamp its supply chain.

As of June 25, the company has borrowed $80 million under its $100 million revolving credit line.

S&P estimates that Careismatic’s earnings before interest, taxes, depreciation and amortization fell by more than 35% ...