Daily News: April 25, 2012

AloStar Business Credit Provides $15 Million to Shoe Sensation

AloStar Bank of Commerce has provided a $15 million secured revolving credit facility to Shoe Sensation, a retailer of brand name footwear and accessories.

Headquartered in Indiana, Shoe Sensation operates 82 stores in 12 Midwest states. The company has established itself as a unique retailer in a growing niche market, focusing on selling name-brand shoes in smaller cities and towns where few other premium retailers operate.

“While many of Shoe Sensation’s competitors specialize in name-brand family footwear, few organizations within its markets have been able to combine the superior quality, variety of merchandise and well-designed store environment with a high level of quality customer service,” said Andy McGhee, president of AloStar Business Credit, the bank’s lending arm. “Shoe Sensation is the type of business we had in mind when we established AloStar Business Credit.”

Shoe Sensation, Inc. focuses on locations in cities and towns with populations of 30,000 to 50,000 people. The company leases all of its 5,000-square-foot retail locations in markets that are at least 30 minutes from the nearest regional mall. The company features brands such as Skechers, Clarks, Dockers, Timberland, Merrell, Nike, New Balance, Adidas and Asics.

“Shoe Sensation, Inc. is pleased to announce the closing of our revolving credit facility and have AloStar as a lending partner,” said Michael Zawoysky, CEO of Shoe Sensation, Inc. “AloStar Bank has quickly learned our business and has gained a significant appreciation for Shoe Sensation’s growth plans. We wanted to replace our existing credit facility with a long-term facility at commercially appropriate rates with additional capacity. Our facility with Alostar will provide added flexibility for us to deliver upon our operating plan for 2012 and the future. Securing the refinancing of our debt should provide our vendors with confidence about our ability to continue our momentum and deliver upon our commitments. We look forward to working with AloStar Bank and appreciate their support.”

Shoe Sensation’s two financial sponsors include Palisade Concentrated Equity Fund II, a private equity partnership managed by Palisade Capital Management, L.L.C., and Consumer Growth Partners.

AloStar Business Credit provides asset-based lending products nationwide to businesses ranging between $20 million and $300 million in revenue and with financing needs ranging between $5 million and $20 million.