Plus-size retailer Fullbeauty Brands Inc. slid further into distress in debt markets Wednesday after reporting a plunge in a key earnings measure. With its biggest loan now trading at about 30 cents on the dollar, the company’s gearing up for talks with lenders over how to manage its increasingly burdensome debt load, people with knowledge of the matter said.
The company’s sales fell more than 8 percent for the second quarter ended June 30, in part because of problems managing inventory and shipping, it told investors on a call Wednesday. Earnings before interest, taxes, depreciation and amortization -- a measure widely followed by lenders -- dropped 32.6 percent. That caused the company’s leverage to balloon to more than 13 times Ebitda, from just above 11 times the previous quarter, said the people, who asked not to be identified because the results are private.
