Salus Capital Partners Closes $15MM DIP Facility for RoomStore
Salus Capital Partners provided a $15 million debtor-in-possession (DIP) credit facility to RoomStore, Inc., the home furnishing retailer. The financing will be used by RoomStore for working capital as the company reorganizes under Chapter 11.
“RoomStore is pleased to have Salus as a lending partner. Our greatest appreciation lies in their knowledge as business people who understand the dynamic nature of retail. Together we make an innovative team, which is essential during our time of restructuring and in today’s ever changing market place,” said Stephen Giordano, president and chief executive officer of RoomStore.
“Salus Capital is committed to delivering flexible and forward-thinking capital solutions to the middle market. As a subsidiary of Harbinger Group Inc., together we benefit from a credit minded investment team and collaborative review of the RoomStore opportunity. The RoomStore DIP facility is a clear example of how an entrepreneurial approach to credit risk can create opportunities during times of challenge and distress. We are pleased to provide a relevant capital solution to the RoomStore team that maximizes liquidity as the company executes its restructuring plan,” said Marc S. Price, SVP, Loan Originations and Corporate Strategy of Salus Capital.
RoomStore was started in 1992 by several members of the Levitz family in Dallas, TX, which at one time operated 63 retail stores in the states of Alabama, Florida, Maryland, North Carolina, Pennsylvania, South Carolina, Texas, and Virginia. RoomStore is a 65% shareholder in Mattress Discounters Group (MDG). Its MDG segment operates 79 bedding stores in the states of Alabama, Virginia, Maryland, the District of Columbia, and Delaware.
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