Alex and Ani have secured capital as they search for a new life after bankruptcy.
The jewelry retailer, best known for its stretchy charm bangles, has secured a $17.5 million senior secured credit facility provided by asset-based lending specialist Second Avenue Capital Partners. The loan will support the company’s working capital needs and business operations following its restructuring last year.
Founded in 2004, Alex and Ani filed for Chapter 11 bankruptcy in June 2021, citing inventory management issues and a sharp drop in store traffic.
The company entered into a restructuring support agreement with its lenders and equity sponsors which 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 revamped Alex and Ani brand and more of our vision for the future. “.
“SACP’s extensive expertise in the jewelry segment, as well as its commitment to our objectives, will help us optimize our capital structure to achieve both short- and long-term growth strategies,” Burger said.
Chris O’Connor, chairman of Second Avenue Capital Partners, said Alex and Ani “have embarked on a new adventure this year.”
“The expanded leadership allowed the company to step back and focus on the fundamentals of the business,” he said. “Alex and Ani cornered this market years ago and now they are assembling the underlying structure to support volume. They have a huge opportunity for growth and we look forward to helping them achieve their goals and execute their strategy. SACP has become very adept at setting up flexible financing solutions for companies in the jewelry sector, and we are proud to welcome Alex and Ani as new clients.”
Alex and Ali emerged from bankruptcy in the fall of 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 famed lawyer Mark Geragos.