Salus Capital Closes $35MM Facility for W Diamond Group
Salus Capital Partners provided a $35 million senior secured credit facility for W Diamond Group Corporation, a manufacturer of men’s tailored clothing.
W Diamond Group Corporation is a new company formed by Doug Williams, former CEO of HMX Group, to continue manufacturing brands including Hickey Freeman, Hart Schaffner Marx, Palm Beach, Exclusively Misook and Christopher Blue.
Authentic Brands Group recently acquired substantially all the assets of HMX Group and affiliates, and the acquisition received final approval by the United States Bankruptcy Court for the Southern District of New York on December 19, 2012.
“Today is a great day for 1,100 American families. Since August, Salus Capital Partners has provided to HMX funding as a bridge to a better-capitalized entity,” said Doug Williams, CEO, W Diamond Group Corporation. “This new company, W Diamond Group Corporation, with a new credit facility provided by Salus Capital Partners will continue the more than 100 years of heritage operating the Hart Schaffner Marx factory in Chicago, IL and the Hickey Freeman factory in Rochester, NY.”
“Salus Capital was pleased to work with Doug Williams and others at HMX Group to provide the bridge financing and subsequent DIP facility necessary to help the company operate through an orderly sales process and bankruptcy resulting in the greatest benefits to all of the company’s constituencies – its employees, management, shareholders, vendors, and the estate,” said Kyle Shonak, senior vice president, Special Opportunities at Salus Capital. “We are very proud of the outcome in which one of the most iconic and widely recognized brands in fine men’s tailored clothing emerges from bankruptcy with new life and strong prospects. We hope to partner in all the future successes of the W Diamond Company and Authentic Brands Group.”
Salus provides loans to companies throughout North America with circumstances ranging from turnarounds to emerging growth situations.