German Luxury Retailer Douglas Signs $2.8 Billion Rescue Deal

  • Refinancing deal is ‘very aggressive,’ says Spread Research
  • It’s another case of investors reaching for yield in junk debt

Photographer: Andrey Rudakov/Bloomberg

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Just two months ago, German beauty retailer Douglas GmbH was on the brink of a debt restructuring and closing Bloomberg Terminal500 stores. Now, it’s won a multi-billion-euro lifeline.

Douglas, owned by CVC Capital Partners, has reached a 2.4 billion euro ($2.8 billion) refinancingBloomberg Terminal and equity deal this week as investors put their faith in Germany’s economic re-opening.