Specialty retailer rue21 plans to open 15 stores in 2021, following the recent openings of three new brick-and-mortar stores. . The retailer, which operates nearly 700 locations in 45 states, also has refinanced its existing term loan, increased available liquidity and lowered its cost of capital.
The company amended its asset-based credit facility to increase availability to $155 million due in 2025, led by Bank of America. The amendment includes an increase to the FILO loan through a joint partnership with Bank of America and Tiger Finance. As of today, total liquidity exceeds $100 million. The new capital structure will allow rue21 to accelerate strategic growth initiatives, including omnichannel enhancements to create more engaging customer experiences, according to a release from the retailer.
The retailer recently launched its rue rewards loyalty program, which already has more than 2.8 million members. Last month, the company appointed former HSN President Bill Brand as its CEO.
“I’m thrilled to join rue21 at such a great time in their history,” said Brand in a statement. “Today’s announcement is a testament to the leadership of the CFO and the entire executive team in executing our operating strategy and putting us in the enviable position of investing in building the rue21 brand, new digital capabilities and opening more new stores.”
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