Pure Beauty Salons & Boutiques, Inc. Files Schedules of Assets & Liabilities

Pure Beauty Salons & Boutiques, Inc. and its affiliated company, BeautyFirst Franchise Corp., filed their schedules of assets and liabilities and statements of financial affairs last week.  The companies filed for chapter 11 protection in Delaware on October 4, 2011.  The companies operate a chain of hair care and beauty supply stores under the trade names Trade Secret, Beauty Express, BeautyFirst, PureBeauty, and Winston's Barber Shop.  Pure Beauty Salons & Boutiques, Inc. operates and/or owns 436 stores (as of the Petition Date) and BeautyFirst Franchise Corp. has agreements with 13 franchisees that operate 22 BeautyFirst and 7 Trade Secret Stores (also as of the Petition Date).

Highlights of the schedules of assets and liabilities and statements of financial affairs:

• Assets
• Pure Beauty Salons: $36.4 million
• BeautyFirst Franchise: $1.7 million
• Secured Liabilities:
• Pure Beauty Salons: $36.4 million (owed to Regis Corporation of Minneapolis, MN - secured by a security interest in substantially all of the companies' assets)
• BeautyFirst Franchise: $36.4 million
• Priority Unsecured Liabilities:
• Pure Beauty Salons: $47,774
• BeautyFirst Franchise: $0.00
• General Unsecured Liabilities:
• Pure Beauty Salons: $18.7 million
• BeautyFirst Franchise: $317,000
• 2011 Pre-Bankruptcy Gross Income
• Pure Beauty Salons: $88.2 million
• BeautyFirst Franchise: $1.07 million
• 2010 Gross Income (10/12/2010 - 12/31/2010)
• Pure Beauty Salons: $36.9 million
• BeautyFirst Franchise: $538,000
• Potentially Preferential Payments (Transfers to Creditors Within the 90 Days Prior to the Bankruptcy Filing)
• Pure Beauty Salons: 246 transfers totaling $16.4 million listed
• BeautyFirst Franchise: None listed
• Potentially Fraudulent Transfers (Transfers to Insiders Within the Year Prior to the Bankruptcy Filing)
• Pure Beauty Salons: Approximately 50 transfers to seven parties totaling $7 million listed
• BeautyFirst Franchise: Four transfers totaling $460,000 listed

Copies of the companies' schedules of assets and liabilities and statements of financial affairs can be accessed by visiting our website: http://www.chapter11cases.com/Reports-Schedules_c_29259.html