Rue 21 in agreement to pay off the debt, extend the credit agreement

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Rue 21 has a new capital structure to accelerate its digital transformation and open new stores.

The clothing retailer said its strong financial position allowed it to refinance its existing term loan, increase available cash and lower its cost of capital. Rue 21 changed its credit facility on assets to increase its availability to $ 155 million due 2025, led by Bank of America, NA

The amendment includes an increase in the FILO loan through a joint partnership with Bank of America and Tiger Finance. As of December 16, total liquidity exceeded $ 100 million. Rue 21 said the new capital structure will allow it to accelerate strategic growth initiatives, including omnichannel enhancements to create more engaging customer experiences.

Additionally, the company said its reduced debt is a testament to its financial strength to seller and owner partners.

“Today is an exciting day as we have achieved our goal of putting rue21 on a secure financial footing in the most unprecedented period,” said Michele Pascoe, chief financial officer of rue21, adding that the retailer continues to exceed expectations. with comparable sales exceeding last year. results. “I would like to thank Bank of America and Tiger Finance for recognizing our focus on working capital productivity and gross margin expansion, and for giving us the opportunity to emerge from a post-pandemic world. able to accelerate the growth of rue21. ”

21 Street, which has nearly 700 stores in 45 states, recently opened three new stores with 15 more slated for next year. It has also launched a loyalty rewards program which has already reached over 2.8 million members. And in October, the company appealed to the former president of HSN Bill Brand as CEO.

“Today’s announcement demonstrates the leadership of the CFO and the entire management team in executing our operating strategy and places us in an enviable position to invest in building the rue21 brand, new digital capabilities and the opening of new stores, ”said Brand.



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