Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC), recently agented a $100 million term loan for the financing of RadioShack Corporation, a Ft. Worth, Texas-based consumer electronics retailer. Pathlight Capital, LLC, a portfolio company of Sycamore Partners, acted as Syndication Agent on the transaction.
RadioShack is one of North America's largest companies in its segment, operating both stores and kiosks located throughout big-box retailers in the United States and Mexico. The company is traded on the NYSE under the ticker RSH. As of June 30, 2012, RSH operated 4,423 company-operated retail stores under the RadioShack brand name in the United States, 1,503 Target store mobile kiosks, 227 companyoperated stores under the RadioShack brand in Mexico, and 1,085 dealer and other outlets.
"We are pleased to provide this financing to RadioShack," said D. Michael Murray, division manager and managing director with the Junior Capital Division of Wells Fargo Capital Finance. "This transaction is another example of our flexibility to tailor financing solutions to meet the needs of our clients."
"We are pleased to have closed on this new term loan with Wells Fargo Capital Finance and Pathlight Capital. This new financing along with the $50 million term loan announced in August largely completes the capital structure strategy we discussed on the second-quarter earnings call, in which we outlined our goal to refinance approximately one-half of the debt maturity coming due in August 2013," said Dorvin Lively, interim chief executive officer of RadioShack.
Michael Archbold Appointed CEO and CFO, Lizanne Kindler Named President and Michele Mandell Named Chief Operating Officer
Sycamore Partners today announced that TLB Merger Sub Inc. (an affiliate of Sycamore Partners) has completed its acquisition of The Talbots, Inc., following the previously announced completion of its tender offer on August 3, 2012. The transaction is valued at approximately $391 million, including net debt.
“We are pleased to have completed this acquisition and are ready to deliver on the promise of executing on the significant potential inherent in Talbots, which remains a premier, storied brand,” said Stefan Kaluzny, a Managing Director of Sycamore Partners. “Building on its 65 years of history, we will restore the Talbots brand and the Company’s heritage as a leading retailer of traditional women’s apparel, shoes and accessories. We are looking forward to what we know will be a long and successful partnership.”
Sycamore Partners also announced that it has appointed a senior executive team at Talbots with considerable experience in merchandising, marketing, finance and operations. Michael Archbold, previously President and Chief Operating Officer of the Vitamin Shoppe, has been named Chief Executive Officer and Chief Financial Officer. Lizanne Kindler, previously Executive Vice President of Product Development at Kohl's Department Stores, has been named President. A former Executive Vice President of Merchandising at Talbots, she will be responsible for product development, merchandising and marketing. Michele Mandell, a 26-year veteran of Talbots and formerly the Executive Vice President of Stores at the Company, has been appointed Chief Operating Officer.
“Talbots is a classic, American fashion retail brand with a strong foundation and an iconic reputation in women’s retail,” said Michael Archbold, CEO and CFO of Talbots. “By restoring the Company’s focus on Talbots’ classic styling, we will be able to reconnect with the Company’s historical customer base. Lizanne, Michele and I look forward to working closely with the other members of the Talbots’ leadership team and the Company’s more than 8,000 committed and hard-working associates to reestablish the brand as the category leader.”
He continued, “We could not have a better partner than the team at Sycamore. Their knowledge of the retail sector is unparalleled.”
Mr. Kaluzny said, “We are excited that Mike, Lizanne and Michele are joining Talbots. They are all veteran retailers and together have extensive financial, merchandising, product development, marketing and operational skills that will be invaluable as we move to better position Talbots for long-term, positive growth. I appreciate the contributions made by Trudy Sullivan and her colleagues, and look forward to working with the entire Talbots team to continue serving Talbots’ loyal customers.”
Talbots’ headquarters will remain in Hingham, Massachusetts, and the Company expects to maintain all of its other offices. As a result of the completion of the merger, the common stock of the Company is no longer listed for trading on the New York Stock Exchange.
Perella Weinberg Partners LP acted as financial advisor to Talbots and White & Case LLP acted as its legal counsel. Bank of America Merrill Lynch acted as financial advisor to Sycamore Partners and Winston & Strawn LLP and the Law Offices of Gary M. Holihan, P.C. acted as its legal counsel.
The Talbots transaction is the second investment by Sycamore, which has more than $1 billion in capital under management. In November 2011, Sycamore acquired a controlling interest in Mast Global Fashions from Limited Brands, Inc.
Michael G. Archbold
Mike Archbold has more than 25 years of strategic, financial, and operating experience in the retail industry. He most recently served as President and Chief Operating Officer of the Vitamin Shoppe. Previously he served as Executive Vice President and Chief Financial and Administrative officer of Saks Fifth Avenue, as well as Chief Financial Officer for AutoZone. He currently serves on the board of directors of Express, Inc.
Lizanne Kindler is an accomplished merchant with experience in both store-based and online retailing. Most recently she served as the Executive Vice President of Product Development at Kohl’s Department Stores. Ms. Kindler was Executive Vice President at The Talbots, Inc. from 2008 to 2010. She previously held a variety of merchandising roles at Ann Taylor.
Over a 26-year period, Michele Mandell held a variety of positions at Talbots, including Regional Manager, Senior Vice President and Executive Vice President. She retired from the Company in 2008. Earlier in her career she held a buying and manager position at Price’s of Oakland and was a women’s sportswear buyer at A.E. Troutman Co.