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MailTribune.com
  • Harry & David gets $100 million credit line

    Wells Fargo's financing will provide local food company flexibility during off-season
  • Harry & David's comeback efforts have been rewarded.
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  • Harry & David's comeback efforts have been rewarded.
    Wells Fargo Capital Finance has provided the Medford-based gourmet food and gift company a $100 million credit line.
    Harry & David's cash flow is highly cyclical, making credit lines helpful during the off-season when the company incurs many of its ramp-up costs.
    After exiting Chapter 11 reorganization two years ago, Harry & David received the 2012 Large Company Turnaround of the Year by the Turnaround Management Association.
    Harry & David Holdings turned in its best annual performance in five years, netting a profit of nearly $13 million during fiscal 2013, which ended June 30. The company's revenue climbed to $380.3 million from $342.6 million in fiscal 2012. The firm whose stock is primarily held by investors whose bonds were converted to equity coming out of the reorganization has grown its customer list by 10 percent in the past year.
    "Many of us grew up enjoying the great products of Harry & David, so we were very pleased to have been able to complete such important financing that will allow them the financial flexibility to make strategic business decisions," said Keith Vercauteren, head of the Retail Finance division at Wells Fargo Capital Finance, in a statement.
    Michael Schwindle, chief financial officer at Harry & David, said the credit line will give the company more flexibility.
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