SLR Credit Solutions closed a $40 million senior credit facility comprising a revolver and term loan for Essex Technology Group (dba Bargain Hunt).
Essex Technology Group is a provider of reverse logistics and excess inventory solutions to manufacturers in the e-commerce/retail sector. Through its Bargain Hunt retail banner, the company operates 91 retail locations and seven online auction pick-up centers across 10 states in the Southeast.
Proceeds from the transaction were used to refinance existing debt and to provide enhanced liquidity for general operations and growth.
“ACON invested in the company in 2020 to harness the company’s unique ability to maximize recovery in the large and growing secondary goods market while at the same time offering the end-consumer extreme value and access to essential goods, all while keeping these goods from being destroyed or ending up in landfills. One critical piece to positioning the Company for further growth was finding a new capital provider. SLR CS provided a compelling, flexible solution,” Gino Dellomo, partner of ACON Investments, said. “This financing will allow the management team to accelerate their growth strategy and further invest in strategic initiatives.”
“There is no question that the retail/e-com industry is challenged with providing value and convenience to the customer while also managing increasing levels of inventory returns and/or excess inventory,” Cheryl Carner, senior managing director and head of originations of SLR Credit Solutions, said. “Bargain Hunt provides their clients with a comprehensive solution that optimizes recovery and reduces waste. Their retail stores offer a broad assortment of branded merchandise at compelling values which resonates with customers especially in the current inflationary environment.”
“Cheryl and her team demonstrated a true understanding of our business and a willingness to be creative to address our needs. The business is now positioned with the right capital partner who will help facilitate our continued growth,” Sid Keswani, CEO of Bargain Hunt, said. “We are excited to have them as partners and are confident they will be supportive of our needs.”
