Express Inc., the fashion chain that cut corporate jobs last month amid widening Q3 losses, has inked a new loan agreement.
Led by private-equity firm Sycamore Partners, the $140 million loan also includes Wells Fargo and Bank of America Merrill Lynch. The new financing adds to Express’ existing $250 million asset-based loan facility, from which it has previously drawn $165 million.
Express said on Thursday that the new financing includes a $90 million FILO Term Loan with a maturity date of May 24, 2024, and a $50 million delayed draw term loan, to be repaid when it receives a CARES Act tax refund expected in the second quarter.
“We continue to effectively manage our financial liquidity. I expect this additional capital will support the company through the duration of the pandemic, and allow us to continue the important and transformational work of the EXPRESSway Forward strategy,” said CEO Tim Baxter.
The transformation strategy, which includes managing liquidity, also calls for management of inventory and new product that aligns with the Express Edit point of view.
Express said the December job cuts, which affected 10 percent of roles at headquarters, was a bid to save $13 million after the third-quarter net loss widened to $90.3 million on a net sales decline of 34.1 percent to $322.1 million