The apparel chain filed for bankruptcy in January and closed its e-commerce site and stores.
Online fashion retailer Bluefly has secured a new $7.5 million credit facility with Wells Fargo Retail Finance LLC, the company reports. It has the option to increase its maximum borrowing under the facility up to $12.5 million.
Online fashion retailer Bluefly Inc., No. 123 in Internet Retailer’s Top 400 Guide to Retail Web Sites, has secured a new $7.5 million credit facility with Wells Fargo Retail Finance LLC, the company reports. It has the option to increase its maximum borrowing under the facility up to $12.5 million. The Wells Fargo facility replaces the company`s $3.5 million credit facility with Rosenthal and Rosenthal Inc.
"Our new relationship with Wells Fargo affords us much more leverage and an attractive cost of capital to invest in inventory as we grow our business," said Bluefly CFO Pat Barry. "This re-financing is important for our business, helping us to obtain the proper merchandise mix to support our national advertising campaign this fall."
"We are impressed with Bluefly`s track record and are pleased to be entering into a relationship that will support their growth initiatives, not only in 2005, but in the long term," said Tim Tobin, national director of marketing & structuring for Wells Fargo Retail Finance. "The relationship with Bluefly demonstrates our commitment to high-growth companies and our sustained interest in the retail sector."
In connection with the transaction, an affiliate of Soros Fund Management LLC provided a $2 million letter of credit in favor of Wells Fargo in order to provide further borrowing capacity. The initial borrowing capacity under the facility, including the availability provided by the Soros letter of credit, is approximately $6 million.
Bluefly had online sales last year of $43.8 million.