Solo Brands Interim CEO John Larson is now the permanent CEO and the company, which warned about its future as a going concern earlier this year, has also restructured its debt.
An amendment to an agreement with JPMorgan Chase Bank provides a revolving credit facility with commitments equal to $90 million, a new term loan facility equal to $240 million, and the paydown by the borrower of $136.5 million of revolving loans and $32.5 million of existing term loans outstanding as of June 13.
Solo Brands’ total outstanding debt under the revolving facility is $19.7 million and $240 million under the new term loan facility as of June 13. The amendment also extends the stated maturity of the revolving loans and the new term loans to June 30, 2028.
“This is a pivotal time for Solo Brands, and we have a strong team in place to implement our plans,” Larson said in a statement. “This successful debt restructuring marks a substantial step forward, creating a significant runway and providing financial flexibility to execute our strategic vision. We believe we have taken appropriate steps to strengthen our balance sheet and liquidity position that underpins our multi-year transformational growth strategy.”
Larson was appointed on an interim basis in February after former CEO Chris Metz stepped down after one year on the job.
Solo Brands warned earlier this year that it was grappling with heavy debt, declining sales, and tariffs. Solo’s portfolio includes Solo Stove, Chubbies, Isle, and Oru.
In May, the company appealed the New York Stock Exchange’s decision to delist the company.
“We are confident that our strong brand recognition, coupled with our turnaround efforts and value accretive initiatives, will position us to continue down the pathway to stabilize and transform the business,” Larson said. “We appreciate the collaboration and support from our lenders. Finally, I am excited to continue in the CEO role, permanently, as the team, board, and I are well aligned.”
