Friedman's Reaches Credit Agreement with Vendors
October 05, 04
Fine jewelry retailer Friedman's Inc has secured vendor agreements under its secured trade credit program representing more than $15 million in obligations owed by Friedman's to participating vendors which will help the firm’s liquidity position.
Under its new amended and restated credit facility which closed last month, Friedman's was required to reserve $9.5 million of availability pending the receipt of vendor agreements totaling at least $15 million in obligations owed by Friedman's as of July 31.
“Friedman's recognizes and appreciates the continued support of our key vendors as we move forward with the Company's ongoing restructuring efforts,” said Sam Cusano, Friedman's CEO.
“The current level of vendor participation in Friedman's secured trade credit program, together with the elimination of the reserve under the new credit facility, helps to ensure adequate liquidity as we move forward.
“Still, the delay in shipments and the more prudent credit policies being implemented by the Company, as well as the impact of the recent hurricanes, have had an adverse effect on recent sales. I expect this trend will continue as we work through production and availability of merchandise issues in obtaining a full assortment of inventory for the upcoming holiday season.”
Friedman's has agreed to repay amounts due to participating vendors as of July 31, over a 15-month period ending on December 31, 2005, and to repay amounts due for new shipments in the ordinary course of business.