Bakers Footwear Group Refinances Credit Facility With Crystal
Bakers Footwear Group, Inc., a specialty retailer of moderately priced fashion footwear for young women, with 220 stores, announced in its first-quarter results that it refinanced its credit facility with Crystal Financial.
The company entered into a new $30 million credit facility with Crystal Financial LLC that replaces its existing credit facility with Bank of America.
The new facility has a term of four years, increases the company’s availability and carries a higher interest rate compared to the previous facility.
Peter Edison, chairman and CEO, continued, “On June 13, 2012, we entered into a new four-year, $30 million credit facility with Crystal Financial LLC replacing our facility with Bank of America. The team at Crystal Financial has been a long term partner of our company and we are delighted to have entered into this new credit agreement, which enhances our financial flexibility as we lengthen the maturity by three years and increase the availability under the facility by several million dollars.”
The company’s business plan is based on mid-single digit decreases in comparable store sales in the second quarter and mid-single digit increases in comparable store sales for the second half of fiscal year 2012. Comparable store sales for fiscal year 2012 through June 9, 2012 have decreased 4.8%. Based on the company’s business plan, including the anticipated impact of the margin improvement and cost reduction program, the Company believes it has adequate liquidity to fund anticipated working capital requirements and expects to be in compliance with its financial covenants throughout 2012.