fashion retailer street21 (r21 Holdings, Inc.) said its formidable financial position has allowed it to refinance its current term loan, reduce the cost of funds and bolster available liquidity, according to a announcement.
“Today is an exciting day as we have achieved our goal of putting rue21 on a secure financial footing in unprecedented times,” said rue21’s Chief Financial Officer. Michele Pascoe said in an ad.
The retailer amended its asset-based credit facility to increase availability to $155 million maturing in 2025 led by Bank of America, NA The amendment comes with an increase in the FILO loan via a collaborative effort between Tiger finance and Bank of America.
“Bank of America and Tiger Finance will help provide rue21 with the working capital capacity needed to support our growth goals and continue to provide our loyal customers with a superb omnichannel shopping experience,” Pascoe said.
She also added that the company’s reduction in debt shows its formidable financial capability to supplier and owner partners.
rue21 says the new capital framework will allow it to accelerate strategic expansion efforts, such as omnichannel improvements, to enable more engaging customer experiences.
The company recently launched a loyalty rewards initiative called rue rewards which has attracted over 2.8 million members. The retailer also opened three new brick-and-mortar retail stores, with 15 more on the way for 2021. And in November, the company named the former president of HSN. Invoice mark as CEO.
Rue21, based in Pennsylvania, operates more than 673 outlets in 45 states and online at rue21.com.
Separately, in April, news surfaced that Office deposit refinanced its asset-based credit facility with a new five-year agreement and had withdrawn its term credit agreement due 2022. The merchant’s new $1.3 billion asset-based credit facility consisted of a credit facility renewable of $1.2 billion and a FILO of $100 million. facility.
