Burlington, NJ—Private equity firm Bain Capital, which owns Burlington Coat Factory, last week told the Securities and Exchange Commission (SEC) that it plans to offer shares of the off-price retailer in an initial public offering to raise $175 million.
Details are few so far: Burlington Holdings didn’t reveal how many shares the company plans to sell, their expected price or the stock exchange where it wants to be listed.
Proceeds from the IPO would be used to pay off its debt.The company, which operates 503 stores, went private in 2006 when Bain Capital LLC bought it for $2.1 billion.
Burlington Coat Factory, which was founded 40 years ago, posted a loss of $121.6 million on sales of $4.16 bill for the year ended February 2013.
In June, the company posted first quarter adjusted earnings of $11.1 million with a net increase in sales of 8.4% to $1.07 billion.
Burlington Holdings wants to raise proceeds to reduce its debt and pay fees to its financial backer, as is the case in many private equity IPOs, experts said.