NEW YORK — Tarrant Apparel Group said after the bell Thursday that it closed on a previously announced $45 million factoring loan with GMAC Commercial Finance.
The financing is a three-year deal that replaces Tarrant’s existing $90 million revolving credit loan.
“Closing our new factoring agreement marks an important step for Tarrant,” said Barry Aved, president and chief executive officer of the company that specializes in private brand and private label casual apparel. “Our new facility provides cost-efficient working capital that is both appropriate and sufficient to fund our current business model.”
Earlier this week, Tarrant warned it would likely post a loss for 2004 as the apparel supplier records currency-related charges to its books. The company also is anticipating significantly softer sales in the second half, which is due to retailers being less aggressive following a lackluster back-to-school shopping season, the company said.
Management said it is looking at a net loss of $96.9 million to $98.9 million on revenues of $157 million to $162 million for 2004. This compares with a net loss in 2003 of $35.9 million on sales of $320.4 million.