Overview
Ritz Camera and Image is a specialty camera retailer with 289 locations operating under the banners, Ritz Camera, Wolf Camera and Camera World Brands. David Ritz and the Ritz Family purchased the company in July 2009 in a 363 asset sale purchase.
Challenge
Upon emergence, the company had a facility with a national asset-based lender. This organization had limited retail lending expertise and their borrowing base structure did not provide for maximum levels of liquidity and therefore limited the Company's ability to build to desired inventory levels. Reduced inventory levels and lack of key branded product caused significant sales and gross margin dollar losses.
Solution
The Company's advisor, looking for an immediate solution to the Company's liquidity needs, contacted Crystal in November 2010. Crystal underwrote a $25.0 million asset-based facility consisting of a $15.0 million revolver and a $10.0 term loan. The transaction closed in December 2010.
“Crystal’s ability to respond quickly to a time-sensitive situation and collaboratively work with the equity sponsor to develop a structure that would maximize liquidity was integral to a successful restructuring for Ritz Camera. Their flexibility and patience throughout the process was a welcome change and we look forward to working with the team again on future assignments.”
—Mark Loeffler, Managing Director VRA Partners, Advisor
