Catalina Marketing Restructures Debt Under Chapter 11
Marketing supplier Catalina announced it was restructuring its debt under Chapter 11 Bankruptcy Code and in the process selling its Catalina Marketing Japan unit as the company seeks to “strengthen its balance sheet.”
“These actions will position Catalina for success with a stronger balance sheet and greater operational and financial flexibility to accelerate investments in strategic growth areas,” said Catalina CEO and president Wayne Powers in a statement.
Along with the sale of its Japan-based business to a subsidiary of Tokyo-based private equity firm D Capital, Inc, Catalina also announced Tuesday that it was reducing its debt by entering a restructuring support agreement (RSA) with nearly all of its lenders in the U.S. Bankruptcy Court for the Southern District of New York.
The sale and balance sheet restructuring is expected to be complete in roughly 30 days. In an FAQ about the process, Catalina noted that it had “the financial liquidity to support its operations and meet its business obligations” and would continue to pay all vendors and suppliers on time.
A Chapter 11 bankruptcy process allows companies to restructure their finances, removing debt from the balance sheet, while avoiding a halt to normal business operations. Pre-packed processes are generally able to be expedited by the courts because the business has already reached an agreement with its lenders.
After the process is complete, Catalina plans to focus its growth on AI-enabled marketing tools for the next three to five years, Powers added in a statement, including “advanced personalization [features], measurement as a service, and a portfolio of full funnel marketing solutions that are connected across channels to deliver 1:1 targeted value to consumers whether they are digitally or non-digitally engaged.”
Founded in 1983, Catalina partners with both CPG brands as well as retailers to create shopper insights programs and provide targeted advertising. The marketing firm has evolved into a data-driven, omni-channel media platform in recent years focusing its business on “targeted, personalized advertising and promotional messages across In-store, CTV, Out of Home, and digital media,” the company reported in statement.
Catalina has worked with brands like Super Coffee or Vermont Creamery in the last two years to move the respective businesses into an omni-channel approach to new consumer acquisition. In the case of Super Coffee, Catalina helped the brand move from a digital-first, DTC consumer base to reach new customers in-store. For retailers and agencies, Catalina has provided data insights and reports to help understand consumer shopping behavior both in-store and online.
Catalina assured its customers that its services will continue uninterrupted as the company completes the sale of its Japanese entity to Yosemite 2 K.K. and restructures its debt in the next 30 days.
