Gibraltar Business Capital provided a $13 million ABL facility to support a home furnishings company during a transition.
A turnaround consultant contacted Gibraltar when his client’s bank was not flexible while the company was making certain business improvements. Gibraltar was able to respond with a $13 million asset-based line of credit to help the company move through the transition.
The company, based in New York City, designs, markets and distributes home fashions such as bedding, towels, shower curtains and pillows sold in several off-price and full-price big-box retail chains.
Anticipating growth, the company invested in infrastructure to serve its growing market. However, the timing of these investments and the cash-flow-producing growth necessary to fund them proved to be problematic, and the traditional bank that had financed the improvements did not have the flexibility to adjust to the company’s needs through this transitional period.
Gibraltar leveraged the company’s accounts receivable and inventory to provide additional working capital and create a bridge to the future.
