The venerable department store chain Loehmann’s was experiencing financial difficulties. Their secured lender was reducing advance rates and imposing additional reserves, thereby restricting borrowing availability. Given Tiger ‘s expertise in the orderly wind-down of apparel manufacturers and retailers, we were called in to assess the company’s situation.
Working with the new senior lender, Crystal Financial, we put together a new $50 million credit facility. Because of the distressed nature of the situation, Crystal had to stretch the advance rates to provide adequate availability to meet working capital needs and to help effectuate management’s turnaround plan.