Alex and Ani Receive $17.5M Credit Facility – JCK


Alex and Ani received a $17.5 million senior secured credit facility, nearly a year after the charm brand left Chapter 11.

The asset-based loan will provide working capital for the newly restructured company so it can further expand its business, said Michael Sullivan, managing director of Second Avenue Capital Partners, the Boston-based firm that provided the facility. .

“Alex and Ani cleaned up the business and got it back in the right direction,” Sullivan says. “This will allow the company to invest more and get back on track and facilitate its continued turnaround.”

The loan will mean no change in the company’s ownership structure or board of directors, he says.

Second Avenue Capital Partners recently provided asset-based loans to two other jewelry companies. In May, he extended an unspecified credit facility to designer brand Maria Tash. In April, he entered into a $10 million senior secured credit facility with MyGemma, the parent company of trading platform WP Diamonds, formerly known as White Pine.

“Some lenders [lend to jewelry companies] and some lenders won’t,” Sullivan says. “If you don’t have the expertise, people tend to turn away. It’s not a space you can dabble in.

“But it’s a space that we love and are really comfortable in. If you have a business like Alex and Ani that is really bouncing back, we see that as a situation where we can really use our expertise.

In a statement, Scott Burger, CEO of Alex and Ani, said, “This new credit facility from Second Avenue Capital Partners is an affirmation of the resiliency of the revamped Alex and Ani brand and more so of our vision for the ‘coming.”

Alex and Ani did not return a request for comment at the time of publication.

In June 2021, the Providence, RI-based company filed for Chapter 11, but left the process several months later. Following a restructuring, the company is 65% owned by Lion Capital and 35% by Bathing Club, an entity controlled by lawyer Mark Geragos.

Photo courtesy of Alex and Ani

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