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ASR going Bankrupt? Buy your Personna's now!

Did a forum search for bankrupt and bankrupcy, but I am fallible. Apologies if a repost!

First the Marijuana issue ... Sucks to be them!


WILMINGTON, Del./NEW YORK, June 25 (Reuters) - One of the world's leading makers of shaving razors may file for bankruptcy as soon as next week, with a plan to sell the company to Swiss bank UBS AG (UBSN.VX), its primary lender, according to sources close to the talks.

Privately-held Personna American Safety Razor Co, which was founded in 1875 in Brooklyn, has given junior lenders and creditors until the end of the month to come up with a better offer for the company, according to two sources with direct knowledge of the negotiations.

American Safety Razor ran into trouble early this year after it lost a contract with Wal-Mart Stores Inc (WMT.N) and sales slowed. It first missed a debt covenant in the last quarter of 2009 and has been negotiating with its lenders -- a group that includes Apollo Investment Corp (AINV.O) -- but faces a waiver deadline of June 29.

Lion Capital, a European private equity fund, bought American Safety Razor for $625 million in 2006 from Boston-based private equity firm J.W. Childs Associates. J.W. had taken the firm private in 1999 for $173 million.

Lion Capital declined to comment.

The razor company, based in Cedar Knolls, New Jersey, did not return several phone calls requesting comment.

In addition to razor brands such as Matrix3, M5Magnum, Solara and Mystique, the company makes single-edged blades used in utility knives and surgical tools. Its shaving razors are typically sold in drug stores such as Walgreen Co (WAG.N) under the stores' own brand.

Lion Capital typically invests in high-profile consumer products such as Jimmy Choo luxury shoes and British cereal brand Weetabix. It is also a lender to American Apparel Inc (APP.A), which has just wrapped up its own debt renegotiations. For details, see [ID:nSGE65N0G3]

JUNE 29 IS DEADLINE

Absent last-minute proposals from either of the two groups of junior lenders, American Safety Razor will file for bankruptcy with a plan to run an auction of the business in bankruptcy court, two of the sources said.

UBS will act as the stalking horse in the auction, several of the sources said. A stalking horse bidder establishes a floor for an auction process. The Swiss bank will make a credit bid, which is typically a bid for what it is owed, sources said.

UBS declined to comment.

Sources said UBS is the largest holder of its senior debt of about $250 million, which is nearly half of the company's total debt, pegged by Standard & Poor's at $540 million as of last fall.

The maker of private label disposable razors has about $175 million of second-lien debt and about a $55 million mezzanine loan. The market value of the senior loan is about $235 million, while the second-lien loan is quoted at 18 cents to 24 cents on the dollar, putting its value at about $37 million.

Apollo Investment Corp was the lender on the company's mezzanine debt, with a par value of $57.3 million, which it said on a conference call in late May has been written down to $6.9 million. Apollo Investment Corp's assets are managed by an investment management unit of private equity firm Apollo.

Patrick Dalton, the president of Apollo Investment Corp, said during last month's call that the writedown reflects its expected outcome for the loan.

"To the extent there's something more than that, that's great, but we can't over promise," Dalton said on the call.

But a bankruptcy filing will likely not end the negotiation and second-lien lenders would still be able to propose an alternative plan.

American Safety Razor has been under pressure in the weak economy from larger, better financed rivals and suffered a serious blow this year when Wal-Mart, the largest U.S. retailer, dropped the company's razors, which it sold as Personna.

Another source said Lion Capital had called in restructuring advisors late last year to advise it on operational changes at the razor company, including a shift to mass market shaving products such as those sold at Wal-Mart and away from lower volume, premium industrial blades. (Reporting by Caroline Humer; editing by Andre Grenon)
 
This isn't the first company that Walmart has done that to. Schrade Walden went under because of losing a Walmart contract. I shop at Walmart because it's convenient, but basically I hate them.
 
I'm assuming that this won't affect Israeli Red Personnas. Anyone know for a fact that they are separate companies?
 
This isn't the first company that Walmart has done that to. Schrade Walden went under because of losing a Walmart contract. I shop at Walmart because it's convenient, but basically I hate them.

Screw Wal-Mart...I'm a Dollar General Man :thumbup1:

...and hello Gurley Native from high on Sand Mountain.

Wp
 
I'm assuming that this won't affect Israeli Red Personnas. Anyone know for a fact that they are separate companies?
ASR claims to have no knowledge of the Red IP. Guess we'll see.

Now would be a good time to stock up on Personna Medical blades.
 
The Israeli Red Personna DOES have ASR's address on the wrapper.
Correct. But dig up some of the older Personna threads--well over a year ago--As I remember it (when it was first discussed) someone contacted them and their rep said they did not make the blade--possibly made by Lord. I'm digging for the thread now.

Found it--Read down a few paragraphs:

http://badgerandblade.com/vb/showthread.php?t=51858

Then there is this post by Dark, which seems to indicate they may be made in Mexico:

http://badgerandblade.com/vb/showpost.php?p=865837&postcount=99
 
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This could also explain why I can buy Personna platinum chrome DE blades at my local .99 cent store...I buy five packs at a time I may as well buy $ 20 dollars worth next time. I had the unfortunate experience of working for a Wal-Mart subsidary company for fifteen years. I'm glad I no longer work there, Wal-Mart is basically the devil ( as far as retail is concerned).
 
The Ted Pellas are actually Gem blades made by ASR/ Personna. I believe the carbon Treet brand blades are also a product of ASR/ Personna.

Right, and Schick only makes injector blades. Except perhaps for abysmal blades made for utility scrapers, this could be the end of the road for new blades for SE shaving. :crying:
 
Right, and Schick only makes injector blades. Except perhaps for abysmal blades made for utility scrapers, this could be the end of the road for new blades for SE shaving. :crying:

I hope that turns out not to be the case. Between injector and SE blades, my personal stock is probably enough for my lifetime, but I'd like other people to be able to experience these into the future.:mad3:
 
I believe there is at least one other company that makes SE blades, they may make Teflon coated ones as well. They are used for science, so they won't disappear.
 
I have been deceived by the internet. Wikipedia and everything says that safety razors are not made in america anymore and you can only find the blades but now I read this to find out that Wal-Mart sells safety razors? Why didn't anyone tell me?

Wal-Mart does sell safety razors they don't, however, sell double edge safety razors.

Safety Razor is a wide encompassing term that includes any razor that makes some effort of protecting your face from the blade: so Injectors, Cartridge Razors, Single Edge Razors, and Double Edge Razors are all safety razors.
 
I have been deceived by the internet. Wikipedia and everything says that safety razors are not made in america anymore and you can only find the blades but now I read this to find out that Wal-Mart sells safety razors? Why didn't anyone tell me?

Disposables (Gillette Good News, etc.) are safety razors. BIC Sensitive disposables are safety razors. Gillette Fusion and Schick Hydro are safety razors. Older replaceable cartridge razors (Trac II, etc.) are safety razors. It's just that none of them are double-edge (DE) or single-edge (SE) or injector safety razors.
 
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