US: Coldwater Creek agrees new $65m loan
US clothing retailer Coldwater Creek has agreed a five-year US$65m senior secured term loan from private equity firm Golden Gate Capital.
The company has also completed an amendment to its $70m revolving credit facility with Wells Fargo Capital Finance which matures on 16 May 2016.
"We are pleased to announce this strategic investment and partnership with Golden Gate Capital, which is a strong endorsement of our brand and turnaround strategy, and provides us with further financial flexibility to complete our near term business objectives and accelerate our growth plans," said Dennis Pence, chairman and CEO of Coldwater Creek.
As part of the agreement, Golden Gate will place two directors on the board of the women's apparel retailer. The first is Neale Attenborough, Golden Gate's retail group operating partner, with the second board member to be named at a later date.
"We believe that the initiatives currently underway, supported by our investment, give the company's management team the necessary time and added resources to successfully execute on its plan," Attenborough said.
The company also reiterated its second quarter fiscal 2012 guidance of a loss per share of $0.15 to $0.20.
Last month Coldwater Creek said it had narrowed its first-quarter losses to US$23.8m as margins and overheads improved. Efforts to boost its merchandise and cross channel marketing also appear to be paying off, the retailer said.
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The CEO of clothing retailer Coldwater Creek, Dennis Pence, will retire at the end of the year, leaving chief merchandising officer Jill Brown Dean to take the helm. ...
Women's wear retailer Coldwater Creek has seen its third-quarter losses narrow on the back of strong sales growth and lower costs....
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