Boston-based Second Avenue Capital Partners (SACP) announced the closing of the senior secured credit facility and indicated that the loan facility will not affect the company's ownership and leadership structure.
Michael Sullivan, managing director, SACP noted that Alex and Ani "have cleaned the company up and put it back in the right direction. This will allow the business to further invest and get back on the right path and facilitate their continued turnaround.”
Scott Burger, the former Pandora executive who was named CEO of Alex and Ani last year, said the loan is an “affirmation of the resiliency” of the Alex and Ani brand.
“We create jewellery that connects with a customer’s emotions. It was essential for us to partner with a lender that could appreciate the intangible value of that emotional connection and recognize the benefit it will have on our continued evolution,” he said, noting SACP’s commitment to the company’s goals and its experience in the industry.
Finance and legal issues
In August 2019 Alex and Ani became embroiled in a legal battle with Bank of America (BA), claiming the lender misclassified a payment in order to push the company to default on a $US170 million loan.
The company’s cash flow has been severely disrupted and lost access to its credit line with BA having close to $US16 million ($AU23 million) in outstanding payments on its books. It was also unable to purchase seasonal inventory, which, it has alleged, lead to a steep decline in sales.”
In September 2019 a new debt structure was finalised with its syndicate of lenders, led by BA.
Alex and Ani has had a chequered history, including a brief stint in Australia, having launched in December 2015 by House of Brands (HOB) and within a little over two years closed its doors due to financial and legal issues that hounded the US-based company.
The company withdrew the brand from the Australian and New Zealand markets starting with its Westfield Fountain Gate flagship store and eight kiosks across NSW, Victoria, Western Australia and South Australia were subsequently closed. It had around 100 retail stockists.
More reading
Alex and Ani gets new CEO to jumpstart the ailing company
From billion-dollar valuation to bankruptcy: Lessons of the Alex and Ani saga
Alex and Ani troubles continue: company files for bankruptcy