Wilsons announces new credit facility
US leather goods retailer Wilsons The Leather Experts Inc. has announced an agreement for a new $180 million revolving credit facility. The line will extend until June 2005 and is provided by GE Capital/Commercial Finance, CIT, Wells Fargo, La Salle and US Bank. The company also announced the private sale of stock to two investors worth a total of $9.9 million.
Since reporting disappointing third quarter results in November, 2001, Wilsons has registered a drop in year-on-year sales each month from December 2001 to March 2002. The company has blamed each fall on a combination of a reduction in international travel since the terrorist attacks on the US in September 2001, the US economic slowdown and unseasonably warm weather over the winter.
Chief executive at Wilsons, Joel Waller explained that the company needed financial security due to the seasonal nature of its revenue streams. He added that the priority for the business was to "rebuild operating profitability" before looking towards growth in store numbers.
