Medical Scrubs Supplier Careismatic Brands Files for Bankruptcy

Careismatic Brands filed for Chapter 11 bankruptcy in New Jersey, seeking to carry out a pre-arranged restructuring agreement with creditors and eliminate $833 million of debt.

The Santa Monica, Calif.-based company, which describes itself as the world’s largest medical apparel provider, will obtain $125 million debtor-in-possession financing from its first lien lenders as part of the agreement, according to its Monday statement.

The restructuring agreement was struck with its equity sponsor and an ad hoc group representing about 76% of first lien lenders and 70% of second lien lenders, the company said. In early 2021, Swiss private equity firm Partners ...