From: ASAP
Gadzooks, Inc. (Nasdaq: GADZ) announced today that it has obtained a three-year, $30 million senior secured credit facility from Wells Fargo Retail Finance, LLC, a leading asset-based lender. The facility replaces an existing $15 million credit facility and will be used to provide additional liquidity as Gadzooks completes its transition to an all-female concept early in the second half of 2003. "We believe the asset-based facility provided by Wells Fargo Retail Finance provides the flexibility and liquidity we need to successfully complete our strategic conversion," said Jerry Szczepanski, Chairman and Chief Executive Officer. "Wells Fargo's retail industry knowledge and willingness to accommodate our unique borrowing needs made this an easy transaction to complete." "As one of the recognized leaders in specialty retailing of casual clothing and accessories for teens, Gadzooks is well-positioned to successfully reinvent their business," said Wells Fargo Retail Finance President and COO William J. Mayer. "We are happy to provide them with the operating capital and flexibility that will meet their needs, and we look forward to Gadzooks' continued growth and success." Dallas-based Gadzooks is a high-energy specialty retailer of casual clothing and accessories offering young men's apparel, junior apparel, accessories and footwear. The company is converting all its stores to an all- female assortment to be effective early in the second half of 2003. Gadzooks currently operates 426 Gadzooks stores and four Orchid stores, for a total of 430 stores in 41 states. Gadzooks owns and operates www.gadzooks.com , an interactive site for teens to visit on the web. Wells Fargo Retail Finance, LLC, headquartered in Boston, is a specialty finance company focused on providing asset-based lending and related financial services solutions to retailers throughout North America. Comprised of former retailers and financial executives, Wells Fargo Retail Finance brings relevant industry expertise to its retail lending services. Wells Fargo Retail Finance is a subsidiary of Wells Fargo & Company (NYSE: WFC), a diversified financial services company with $349 billion in assets, providing banking, insurance, investments, mortgage and consumer finance for more than 5,400 stores and the Internet (www.wellsfargo.com ) across North America and internationally.
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