Ames Department Stores, Inc announced today the signing of its new financing agreement with Kimco Funding, LLC, an affiliate of Kimco Realty Corp, providing for up to $75m in new funding available to Ames for general corporate purposes.

Under terms of the new credit facility, Kimco has agreed to provide Ames with a loan secured by first priority leasehold interests on approximately 150 Ames stores as well as second priority security interests in inventory and owned real estate.

Funding will begin promptly as the leasehold mortgages are recorded. The financing can be used by Ames for unrestricted working capital and general corporate purposes, and provides increased liquidity for Ames' retail operations.

"Closing on this new financing from Kimco helps maintain the liquidity we need in this challenging environment," said Ames chairman and chief executive officer, Joseph R. Ettore. "These arrangements further reflect underlying confidence in our strategy."