Saks Off 5th is powering up for its next big step.
The now stand-alone online retailer locked in a $125 million asset-based five-year revolving credit facility, arranged by Citibank and Citizens. The off-pricer also lined up a $20 million term loan, arranged by Callodine Commercial Finance.
Saks Off 5th, which like its full-price counterpart is controlled by Hudson’s Bay Co., secured a $200 million investment from Insight Partners in June that valued the business at $1 billion. That mirrored a partnership struck by the company’s full-price sibling saksfifthavene.com, deals that sources expect will eventually lead to a pair of initial public offerings.
Paige Thomas, president and chief executive officer of Saks Off 5th, said: “With our recent investment from Insight Partners and the transactions we’re announcing today, Saks Off 5th is well capitalized to fuel our aggressive online growth. We remain focused on elevating our online experience while providing unparalleled access to highly desired brands.”
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In June, Richard Baker, HBC’s governor, executive chairman and CEO, told WWD that, “Year-to-date, the Saks Off 5th digital business is up over 100 percent to the same period in 2019.”
The momentum seems to be holding up.
Luke Coffey, Saks Off 5th’s chief financial officer, said on Monday: “SaksOff5th.com continues to experience outstanding growth, and we see great opportunity ahead as we work to enhance our digital capabilities and customer experience. These transactions further solidify our strong liquidity position and support our investment plan, providing us with additional financial flexibility.”
The online retailer plans to use the money for general corporate purposes, working capital and capital expenditures.
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