Retail Deals Show Low Debt, High Cash Always In Fashion

Law360, New York (May 31, 2013, 5:38 PM EDT) -- With little debt, good cash flow and lots of places to find savings, clothing chains are sparking interest from private equity buyers, as seen in recent deals for Rue21 Inc., Hot Topic Inc., True Religion Inc. and others.

Last week, Apax Partners LLP struck a $1.1 billion deal for Rue21, a teen-focused line with 900 stores and surging after-tax earnings. Sycamore Partners LLC snapped up Hot Topic last month and appears close to a deal for struggling Australian surfwear company Billabong Ltd. Towerbrook Capital LLC is...
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