A California scrubs maker is closing its Dallas facility and laying off 400 workers.
Careismatic Brands Inc. is shuttering its distribution centers in Dallas and ceasing operations in the state starting at the end of May.Santa Monica, Calif.-based scrubs and medical fashion producer Careismatic Brands Inc. is closing the doors to its Dallas distribution centers and laying off 404 employees in the process, according to layoff notices filed with the Texas Workforce Commission.
The distribution centers, located at 35500 Lyndon B. Johnson Freeway and 4715 Mountain Creek Parkway, will close on May 31.. The new facility was supposed to be a big move forward for the company as it was an attempt to “rebuild culture and reset operating framework for the future,” Careismatic COO Sidharth Lakhani said in a statement in February 2023.
Careismatic is still reeling from filing from Chapter 11 bankruptcy protection on January 22. To help eliminate its $833 million loan, it agreed to hand the company’s keys to lenders, according to. Court documents at the time said Careismatic “overextended itself” by taking on new debts in order to increase sales and meet the high demand of medical apparel during the COVID-19 pandemic.
The company’s top lenders were owed $690 million when it filed for bankruptcy, but they now own Careismatic. However, a separate group of lenders were still owed $110 million and received warrants to purchase some of its stock. Despite its revenue falling by $128 million between 2021 and 2023, Careismatic, owned by private equity firm Partners Group, comprises about half of the U.S.’ medical apparel wholesale market and still owns prominent brands like Cherokee, Dickies and Scrubstar.. Irving is a business writer for the Dallas Morning News. He's previously served as an environmental reporter for Bridge Michigan, a writer for Automotive News, and the sports and managing editor for the South End.
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