Struggling US retailer of leather outerwear, accessories and apparel Wilsons The Leather Experts Inc. has completed the closing of the previously announced private placement of a newly-created series of convertible preferred stock and warrants.

Under the deal Wilsons issued 45,000 shares of preferred stock to an affiliate of Goldner Hawn Private Equity, Peninsula Investment Partners and Quaker Capital Management Corporation for an aggregate purchase price of $45 million. Wilsons intends to use the proceeds for general working capital purposes and to pay fees related to the transaction. The proceeds will also be used to repay the $20 million Term B promissory note, thereby increasing availability under the company's revolving credit facility.