Daily News: April 17, 2019

Rosenthal Closes $80MM Factoring Deal for Apparel Firm

Rosenthal & Rosenthal’s West Coast team completed a $80 million factoring deal that includes an $8 million financing facility to support a Los Angeles-based apparel company’s growing sales program with its retail customers.

As part of the deal, Rosenthal will provide factoring services, including credit and collections support, and fund the company’s turnaround plan. Like many apparel companies in recent years, this new client experienced a sharp downturn in sales volume in response to consolidation across the retail sector. The client’s professional advisors introduced Rosenthal when the company’s current lender began to reduce and restructure the original financing arrangement. Rosenthal was able to quickly provide more flexibility and availability than the client’s existing lender was able to offer.

“When a company doesn’t have the support it needs from its lender – financially or otherwise — it’s time to find a new partner. Rosenthal’s in-depth knowledge of the apparel industry and our deep understanding of the challenges that companies in a turnaround or high-growth situation face, made us uniquely positioned to step in and provide support,” said Maria Contino, senior vice president and western region sales manager at Rosenthal.