Sun Capital's Anchor Blue Files Chap 11

Sun Capital Partners and Ares Management backed Anchor Blue Retail Group has filed for chapter 11 bankruptcy. The company is a retailer of casual apparel and accessories and owns the Levi's & Dockers Outlet by MOST stores. As part of the filing the company has entered into stalking horse bid agreements for its Levi's & Dockers Outlets with Levi Strauss & Co and for its Anchor Blue Division with an undisclosed investment firm. Anchor Blue also secured $20 million of DIP financing from Wachovia Capital Partners.

Private equity investors have been involved in 45 company bankruptcies so far this year, either buying a company or owning a company in bankruptcy. Sun Capital Partners has been the most active with seven portfolio companies filing for chapter 11 so far in 2009 and the acquisition of two companies, including its bankrupt portfolio company Fluid Routing Solutions. Other active firms in the bankruptcy arena have been liquidators such as Gordon Brothers Group and distressed investors such as Patriarch Partners.