ASHLEY’S NEW CREDIT: Ashley Stewart is getting its financial house back in order.
Tiger Finance has provided the plus-size retailer with a $15 million revolving credit facility, boosting the company’s liquidity after a controversial change in ownership last year.
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G Ashley Inc. bought Ashley Stewart assets in November through a Uniform Commercial Code Article 9, which allows for a foreclosure sale after a default.
But in an unusual wrinkle, Ashley Stewart’s board called foul on that sale, arguing that G Ashley was a “disguised insider entity,” and put the company into bankruptcy to try to stop it. The court dismissed the case.
Now Ashley Stewart is moving forward and plans to use the new capital to buy inventory and improve its 72 stores and e-commerce business.
“This revolving line of credit strengthens the company’s near-term liquidity profile and supports a disciplined restructuring process,” said Andy Babcock, senior managing director at Tiger Finance. “Our facility is designed to provide Ashley Stewart with the working capital flexibility needed to stabilize operations and position the brand for improved profitability.”
Sarika Gupta, the chief financial officer of Ashley Stewart, said: “This partnership underscores Ashley Stewart’s long-standing resilience and ability to reinvent itself through changing retail cycles. With added liquidity, the brand will accelerate ongoing transformation initiatives while staying true to its mission of serving and uplifting curvy women.”
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