NEW YORK — Maidenform said Tuesday that it has completed a new three-year secured $60 million revolving line of credit with Congress Financial Corp.
This story first appeared in the May 7, 2003 issue of WWD. Subscribe Today.
The new credit facility is an “asset-based lending arrangement,” secured by receivables and inventory, said Kevin Walsh, executive vice president and chief financial officer of Maidenform.
Larry Forte, executive vice president of Congress Financial, a unit of Wachovia Bank N.A., said, “Maidenform’s management has accomplished a remarkable turnaround of this intimate apparel industry icon. Our relationship has grown substantially and because they remain a private company, the public cannot appreciate the financial improvements continuing to be made in all areas. We are most pleased to have them in our portfolio going forward.”
Scott Graves, vice president of Oaktree Capital Management LLC, which owns Maidenform, noted that the value of Maidenform has “tripled” in the last two years under the leadership of Tom Ward, Maidenform’s president and chief executive officer. “The company’s annual double-digit growth over the period, despite very difficult economic conditions, was fully supported by Congress Financial and I am pleased with their continuing support of our future plans and programs,” Graves said.
Asked if Maidenform, as reported, is for sale, Walsh replied, “If there is a suitor out there willing to pay the value of the company, it is the responsibility of the company to consider it.” The 81-year-old Maidenform generated close to $250 million in sales in 2001.