Hello Bello, the baby and family care brand founded by actress Kristen Bell and actor Dax Shepard, has filed for bankruptcy after five years in business.
The company has struggled to stand out in an increasingly crowded market despite the hype surrounding the brand and the star power of its founders. Hello Bello has voluntarily filed for Chapter 11 and will be acquired by private equity firm Hildred Capital Management.
Image Credit: Hello Bello
To facilitate the acquisition, Hello Bello and its affiliates have filed voluntary petitions for relief under Chapter 11 in the United States Bankruptcy Court for the District of Delaware.
Despite the bankruptcy filing, Hildred Capital Management sees the potential in Hello Bello and has reached an agreement in principle to acquire the brand.
Hello Bello is a leading brand of premium, affordable baby and family care products that seeks to provide high-quality products at a reasonable price.
The acquisition by Hildred Capital Management will allow Hello Bello to position itself for long-term success and growth. The healthcare-focused private equity firm seeks opportunities to create value in middle-market companies, and Hello Bello fits that criteria.
The brand has a loyal customer base and a strong reputation for providing quality products. With Hildred Capital Management’s backing, Hello Bello will be able to continue to provide its customers with the best possible products and services.
On October 23, 2023, Hello Bello, a baby products company founded by actors Kristen Bell and Dax Shepard, filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware. The company cited increased shipping costs and macroeconomic trends as contributing factors to its financial struggles.
To facilitate the acquisition by healthcare-focused private equity firm Hildred Capital Management, Hello Bello and its affiliates have also filed voluntary petitions for relief under Chapter 11. This allows the company to continue operating while undergoing financial restructuring.
According to court papers, Hello Bello has secured debtor-in-possession financing to fund its operations during the Chapter 11 process. The company is also working with its lenders and creditors to develop a plan for financial restructuring.
The bankruptcy filing is part of several strategic moves designed to position Hello Bello for long-term success. The company sees the acquisition by Hildred Capital Management as a positive step towards achieving this goal.
Overall, the bankruptcy filing and subsequent acquisition represent a significant development in the baby products industry. It remains to be seen how Hello Bello’s financial restructuring will play out, but the United States Bankruptcy Court will oversee the process to ensure that all parties are treated fairly.
The Acquisition by Hildred Capital
Hello Bello, a leading brand of premium baby and family care products, has reached an agreement in principle to be acquired by Hildred Capital Management, a healthcare-focused private equity firm that seeks opportunities to create value in middle-market companies.
The proposed transaction is subject to higher or otherwise better offers and requires approval from the bankruptcy court under Section 363 of the Bankruptcy Code.
Hello Bello voluntarily filed for Chapter 11 bankruptcy after five years in business, and its secured lenders are supportive of the sale process. Hildred Capital’s offer includes debtor-in-possession financing to support the company’s operations during the sale process.
The deal is expected to position Hello Bello for long-term growth and success, as Hildred Capital brings significant industry expertise and resources to the table. The acquisition will also allow Hello Bello to continue providing high-quality products to its customers at an affordable price point.
UBS is serving as financial advisor to Hello Bello in connection with the proposed transaction. The assets of Hello Bello will be sold through a competitive bidding process, and interested parties can submit their bids to UBS.
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