SmartBargains receives $28mn line of credit from WFC
20 Jun '06
2 min read
SmartBargains, Inc. a leading online retailer of high quality off-price merchandise announced that it has received a $10 million investment from its existing investors, closing out a total $28 million commitment from them. Additionally, the company has entered into a long-term line of credit with Wells Fargo Retail Finance, part of Wells Fargo & Company (NYSE: WFC), that provides up to $20 million of availability.
SmartBargains will continue to utilize the proceeds from this investment for capital needed to execute its strategic plan and mission. The company expects to grow its revenue significantly in the coming year through investments in expanded merchandise offerings, several new additions to its merchandising team and enhancements to its web site. The SmartBargains investors are led by Highland Capital Partners, Maveron, Gordon Brothers, Time Warner, General Catalyst and New England Development.
"SmartBargains has made significant progress over the last few months and we are more bullish than ever about the opportunity that the company presents," said Bob Higgins of Highland Capital Partners. "This latest investment provides SmartBargains with the working capital necessary to execute its growth and profitability plans."
The new line of credit with Wells Fargo Retail Finance provides SmartBargains with the financial flexibility to meet its peak merchandise inventory needs that typically occur before the holiday season. This will ensure that SmartBargains will be able to acquire more of the first-quality merchandise that its customers have come to expect.