Apparel maker Centric Brands Inc intends to emerge from Chapter 11 bankruptcy protection by the end of October after its reorganisation plan received court approval. 

The plan has also been supported by the company's lenders, and will see it emerge from Chapter 11 with a recapitalised balance sheet, new financing facilities, significantly reduced debt and interest payments.

The New York based company designs, sources, markets and sells kids, men's and women's apparel, accessories, beauty and entertainment for licensed brands including Calvin Klein, Tommy Hilfiger, Nautica, Spyder and Under Armour. It also owns the Hudson, Robert Graham, Swims, Zac Posen and Avirex brands. 

Centric Brands expects to emerge as a private company, under the ownership of its current lenders led by Blackstone, Ares, and HPS. 

Blackstone will exchange its second lien debt for equity interests in the reorganised company. Existing senior lenders Ares and HPS will retain their senior loan positions and will receive equity interests.

Also contemplated under the terms of the plan, the company expects to secure new exit financing, as well as new revolving and term loan facilities from its current secured lenders.

The business filed for Chapter 11 bankruptcy protection back in May, saying the coronavirus pandemic disrupted many of its wholesale accounts' ordering and constrained its cash flow.