Lumity Medspa

Client Profile
Lumity Medspa (“Lumity” or the “Company”)owns and operates mall-based retail medical spa locations. The Company provides high quality services, including laser hair removal, skin rejuvenation, botox injections, microdermabrasion and vein treatment. Lumity operates 37 stores in premier mall locations in California, Nevada, Oregon and Washington and is one of the largest providers of these services in the country.
Situation
The ownership acquired the Skin Nuvo Medspa chain out of bankruptcy in mid-2005 with the goal of entering into an aggressive capital expenditure and store conversion program across all the units. Lumity aggressively pursued the conversion program and successfully re-branded the stores and installed new equipment. Despite this effort, the Company experienced slower than expected growth and significant liquidity constraints.
Solution
SSG’s professionals were retained with the mandate of quickly selling the business to retain value for all stakeholders and allow Lumity to continue as a going concern. After an expedited marketing process, SSG’s professionals identified several parties interested in pursuing the opportunity. Following several weeks of diligence and negotiations, SSG completed the transaction with Pure Laser in March 2006 for cash consideration, and assumption of liabilities with equity retaining an interest in the new entity.