R.G. Barry Corporation has entered into a new US$35m committed asset-based lending agreement (ABL facility) with CIT Commercial Services, a unit of CIT Group Inc.
The two-year facility replaces a discretionary factoring and financing arrangement with CIT that was scheduled to expire in March 2007.
“We appreciate the vote of confidence this new committed agreement gives to our efforts to restore healthy growth and profitability to the Company,” said Thomas Von Lehman, R.G. Barry Corporation president and chief executive officer. “We feel CIT has been a great partner over the past year and believe that our former factoring and financing facility was a critical component of our turnaround plan by providing the necessary liquidity and flexibility to expediently implement our new business model during 2004. We are very pleased to enter into a new financing arrangement with CIT as the next logical step for our business.”
