Salus Capital Partners has provided a $35 million senior secured credit facility to W Diamond Group Corp.
W Diamond is the new company formed by Doug Williams to manufacture the brands owned by HMX Group. Williams was HMX’s chief executive officer, until the assets were sold in a bankruptcy court approved auction last month. The assets were sold to Authentic Brands Group, which in turn kept ownership of the intellectual property for brands such as Hickey Freeman and Hart Schaffner Marx, but then sold ownership of the operations of the former HMX businesses to W Diamond.
Salus provided financing last summer to HMX, and then a $65 million debtor-in-possession credit facility to the company last fall when it entered into bankruptcy.
Williams, W Diamond’s ceo, said, “This new company, W Diamond Group Corp., with a new credit facility provided by Salus Capital Partners will continue the more than 100 years of heritage operating the Hart Schaffner Marx factory in Chicago and the Hickey Freeman factory in Rochester.”
Kyle C. Shonak, senior vice president, special opportunities at Salus, said his company hopes to “partner in all the future successes of the W Diamond Company and Authentic Brands Group.”