Alex and Ani has received a $17.5 million senior secured credit facility, nearly a year after the charm brand left Chapter 11.
The asset-based loan will provide working capital for the newly restructured company so it can further develop its business, says Michael Sullivan, managing director of Second Avenue Capital Partners, the Boston-based company that provided the facility.
“Alex and Ani have cleaned the company up and put it back in the right direction,” Sullivan says. “This will allow the business to further invest and get back on the right path and facilitate their continued turnaround.”
The loan won’t mean any change to the company’s ownership structure or board, he says.
Second Avenue Capital Partners recently provided asset-based loans to two other jewelry companies. In May, it provided an unspecified credit facility to designer brand Maria Tash. In April, it closed on a $10 million senior secured credit facility with MyGemma, the parent company of trading platform WP Diamonds, formerly known as White Pine.
“Some lenders will [lend to jewelry companies] and some lenders won’t,” Sullivan says. “If you don’t have the expertise, people tend to shy away. It’s not a space you can dabble in.
“But it’s a space that we like and are really comfortable with. If you have a company like Alex and Ani that is really rebounding, we see it as a situation where we can really use our expertise.”
In a statement Scott Burger, CEO of Alex and Ani, said, “This new credit facility from Second Avenue Capital Partners is affirmation of the resiliency of the reorganized Alex and Ani brand and even more so of our vision for the future.”
Alex and Ani did not return a request for comment by the time of publication.
In June 2021, the Providence, R.I.–based company filed for Chapter 11 but exited the process several months later. Following a restructuring, the company is 65% owned by Lion Capital and 35% owned by Bathing Club, an entity controlled by attorney Mark Geragos.
Photo courtesy of Alex and Ani
Follow JCK on Instagram: @jckmagazineFollow JCK on Twitter: @jckmagazine
Follow JCK on Facebook: @jckmagazine
