rue21 amended its asset-based credit facility to increase availability to $155 million due 2025 led by Bank of America. The amendment includes an increase to the FILO loan through a joint partnership with Bank of America and Tiger Finance.
“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,” Michele Pascoe, CFO of rue21, said. “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.”
Last month, rue21 appointed former HSN president, Bill Brand, to the role of CEO.
“I’m thrilled to join rue21 at such a great time in their history,” Brand said. “Today’s 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.”
“Bank of America and Tiger Finance will help provide rue21 with the working capital capacity to support our growth objectives and to continue to provide our loyal customers with a superb omnichannel shopping experience. In addition, our reduced debt load signals our financial strength to vendor and landlord partners.” Pascoe said.
