Stephanie McLean A strategic restructuring to ensure financial resilience and sustained innovation, backed by $65 million in funding.
While rumours have circulated about the company’s financial struggles since late 2024, Cutera Inc. officially filed for bankruptcy this week. Cutera attributes its financial challenges to the loss of a key distribution partnership, increasing competition, declining consumer demand, and an impending $69 million loan maturity.
The California-based company, despite carrying a staggering $429 million in debt, remains optimistic amid the bankruptcy filing. With the support of Houlihan Lokey and financial advisory firm FTI Consulting, the company has implemented a prepackaged plan to reduce $400 million in debt and transition to private equity ownership. The ambitious plan is set to support them emerging from this turmoil within an ambitious 60 days.
While the outcome remains uncertain, Cutera has secured $35 million in seed funding from existing lenders representing approximately 74% of the company’s notes. This investment is designed to strengthen its balance sheet and support long-term stability. Once the company successfully exits bankruptcy, the funding will be converted into term loans, providing a critical cash injection to sustain operations throughout the restructuring process.
“There is clear momentum underway across the business, and today we are taking an important step that will enable us to continue to execute on our growth initiatives and pursue our mission with a much stronger capital structure to support us. We are pleased to have the confidence of our lenders, who are aligned with our vision and invested in our future success. We thank our customers and partners for their continued support, and we are grateful to our employees for their commitment to Cutera. We look forward to continuing to innovate, serve our customers, and improve patient lives for many years to come” says Taylor Harris, CEO of Cutera. “Cutera has established a legacy of premium engineering, innovation, and service, and we are constantly evolving to better meet the needs of our customers and their patients”.
says Taylor Harris, CEO of Cutera.
We reached out to the Australian Cutera team for comment. “Most importantly, customers located outside of the United States are not included in the Chapter 11 filings. We are operating as usual, and serving our customers remains our top priority,” said Helen Tudhope, Director of Marketing – Australia & New Zealand.
With a clear strategy, investor backing to support the financial reset, and a planned transition to private equity, could mark the reinvention of Cutera?
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