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Crossroads Provides $12MM Inventory Revolver for Fabrics Firm

November 11, 2019, 08:45 AM
Filed Under: Distribution

Crossroads Financial, a leading provider of inventory financing, has recently provided a $12 million inventory revolver for the benefit of a distributor, retailer and wholesaler of interior fabrics.

Two iconic brands in the upholstery fabric space, originally founded in 1938 and 1958, merged in 2017 and became the largest library of colors and patterns for fabric and the second largest supplier of decorative fabrics in the design industry. While both companies were individual industry leaders , the company post-merger was unable to maintain the debt within the two companies and forced into filing for bankruptcy.

Crossroads was approached by an equity group to provide a leveraged buyout using the borrower's inventory as collateral.

Crossroads' loan against the inventory allowed the equity group to acquire the company's assets out of bankruptcy while also providing working capital to restructure their business plan to get back on track.

After the acquisition, Crossroads brought in a Factor to advance against post acquisition Accounts Receivables.

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