In The News |
| May 30, 2006 |
ONLINE RETAILER SMARTBARGAINS.COM RECEIVES $10 MILLION IN FUNDING; ESTABLISHES NEW $20 MILLION LINE OF CREDIT
BOSTON, May 30, 2006, - SmartBargains.com, Inc. a leading online retailer of high quality off-price merchandise, today 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.com 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.com investors are led by Highland Capital Partners, Maveron, Gordon Brothers, Time Warner, General Catalyst and New England Development.
"SmartBargains.com 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.com with the working capital necessary to execute its growth and profitability plans."
The new line of credit with Wells Fargo Retail Finance provides SmartBargains.com with the financial flexibility to meet its peak merchandise inventory needs that typically occur before the holiday season. This will ensure that SmartBargains.com will be able to acquire more of the first-quality merchandise that its customers have come to expect.
"SmartBargains.com is well positioned to capitalize on marketplace opportunities and continue its growth, and we're pleased that our investors continue to recognize this potential," said Ben Fischman, CEO of SmartBargains.com. "SmartBargains.com has been acquiring new customers rapidly and, just as important, we've built a loyal customer base-which has resulted in higher repeat purchase rates. With this investment, coupled with the new credit facility, we will provide our new and existing customers with even more exciting products at great values."
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