Daily News: October 26, 2012

Wellington Financial Provides $10 Million to Beyond the Rack

Wellington Financial announced a $10 million venture debt financing for Beyond the Rack of Montreal. Beyond the Rack is an online shopping club offering its members top designer brand fashions, accessories, beauty and home decor products at deeply discounted prices.

“In three short years, Beyond the Rack has done a fantastic job of building a leading North American e-commerce franchise. Their focus on providing members with value and variety has made their site one of the most compelling on the internet,” said Mark Usher, partner at Wellington Financial LP. “With over 7.5 million members and deals with more than 3,000 brands, Beyond the Rack has quickly become the third largest e-commerce platform in Canada and we are very confident their value proposition will continue to resonate as they grow across North America.”

Yona Shtern, co-founder and CEO of Beyond the Rack, said, “Wellington Financial is a key partner for us to help execute on our growth strategy to increase our membership base. We are delighted to add Wellington Financial to our renowned team of investors and regard them as a key partner in this next stage of our expansion.”

Beyond the Rack is backed by leading venture capital firms including BDC Venture Capital, Export Development Canada, Highland Capital Partners, iNovia Capital, Panorama Capital, Rho Canada and Tandem Expansion Fund.

Wellington Financial is a privately held specialty finance firm providing term, venture and amortizing loans up to $30 million.