Alex and Ani secures multimillion-dollar loan
Alex and Ani has secured captial as it seeks new life post-bankruptcy.
The jewelry retailer, best known for its signature expandable charm bangle bracelets, has closed on a $17.5 million senior secured credit facility provided by asset-based loan specialist Second Avenue Capital Partners. The loan will support the company’s working capital needs and business operations following its corporate restructuring last year.
Founded in 2004, Alex and Ani filed for Chapter 11 bankruptcy protection in June 2021, citing inventory management troubles and a big decline in store traffic.
The company entered into a restructuring support agreement with its lenders and equity sponsors that was implemented with the filing.
Scott Burger, who was named CEO of Alex and Ani in January, said the loan from Second Avenue Capital Partners is an “affirmation of the resiliency of the reorganized Alex and Ani brand and even more so of our vision for the future.”
“SACP's vast expertise in the jewelry segment, along with their commitment to our goals, will help us optimize our capital structure to achieve short and long-term growth strategies,” Burger said.
Chris O'Connor, president of Second Avenue Capital Partners, commented that Alex and Ani “has embarked on a new journey this year.”
“Expanded leadership has allowed the company to take a step back and focus on the foundation of the business,” he said. “Alex and Ani cornered this market years ago and now they're assembling the underlying structure to support the volume. They have an enormous opportunity for growth and we're eager to help them achieve their objectives and execute on their strategy. SACP has become very adept at putting together flexible financing solutions for companies in the jewelry space, and we're proud to welcome Alex and Ani as our newest client."
Alex and Ali emerged from bankruptcy in fall 2021. As part of its restructuring, Lion Capital reduced its stake in the company to 65%. The remaining 35% was sold to Bathing Club LLL, which is owned by celebrity attorney Mark Geragos.