January 19, 2001, 12:00 AM

Ashford.com Closes $25 Million Credit Line

Ashford.com announced the closing of a three-year, $25 million revolving credit facility from Congress Financial Corporation, a unit of First Union National Bank. This debt financing increases the company's working capital without dilution to its shareholders, and is secured in part by Ashford.com's inventory of luxury goods.

"We believe we are the first Internet retailer to secure senior credit financing based on a business model of selling high-end, high-margin merchandise, with historically lower depreciation of inventory value and faster inventory turns," said Kenny Kurtzman, CEO of Ashford.com. "This loan provides us with an even greater cushion in working capital to help us manage through seasonal demand."

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