Ames finalizing new financing deal
July 3, 2001-- Home Textiles Today,
Rocky Hill, CT — Setting up a fresh infusion of cash to pay merchandise suppliers and stock its shelves for the Back to School season, regional discounter Ames Department Stores said it is finalizing a new $75 million financing pact with shopping center owner Kimco Realty Corp.
The fresh financing will be secured by leasehold interests on some of Ames stores, said the retailer.
Under the terms of the deal, up to $75 million will be provided to Ames, "at competitive interest rates," the company reported. The financing will be available for Ames' "unrestricted use for working capital and general corporate purposes, and will provide increased liquidity for Ames' retail operations," said the retailer.
"The new funding from Kimco will give us additional resources to meet the needs of our vendors and other partners," said Joe Ettore, Ames chairman and ceo. "It continues Ames' drive to use creative approaches that maximize the full potential of our resources. Together with continued growth in our retail margins, and reductions in SG&A expenses, this new funding from Kimco will substantially improve our liquidity as we enter the Back to School selling season."
Related Content By Author
Previewing Heimtextil 2017