Warrendale, Pa. — A new deal with Bank of America, N.A. and Tiger Finance has allowed specialty retailer rue21 (r21 Holdings, Inc.) to strengthen its financial position and enabled it to refinance its existing term loan, increase available liquidity and lower its cost of capital. rue21 amended its asset-based credit facility to increase availability to $155 million due 2025 led by Bank of America, N.A. The new capital structure will allow it to accelerate strategic growth initiatives, including omni-channel enhancements to create more engaging customer experiences.
“Today is an exciting day as we’ve accomplished our goal of putting rue21 on a secure financial footing in the most unprecedented of times,” says Michele Pascoe, rue21’s chief financial officer, noting that the retailer continues to outperform expectations with comparable sales exceeding last year’s results. “I want to thank Bank of America and Tiger Finance for recognizing our focus on working capital productivity and gross margin expansion, and for providing us with the opportunity to emerge from a post-pandemic world in a position to accelerate rue21’s growth. We have worked with both Bank of America and Tiger for many years, and view them both as valued financial partners.”
With nearly 700 stores in 45 states, the affordable fashion retailer is one of the few specialty retailers with a positive story. The retailer recently opened three new brick-and-mortar stores with another 15 planned for next year. Last month, the company appointed experiential retail transformer and former HSN president, Bill Brand, as its chief executive officer (pictured at left).
“I’m thrilled to join rue21 at such a great time in their history,” says Brand. “[This] announcement is a testament to the leadership of the CFO and the entire executive team in executing our operating strategy and putting us in the enviable position of investing in building the rue21 brand, new digital capabilities and opening more new stores.”
rue21 is a fashion destination that gives customers quality styles at accessible prices. Headquartered just north of Pittsburgh, in Warrendale, Pa., rue21 operates more than 673 stores in 45 states and online at www.rue21.com.
SOURCE: rue21