$8M Rescues Footwear Manufacturer Dropped by Traditional Lender
Funding Received:
$8 Million
The Challenge
The California-based Phoenix Footwear Group has run a highly successful business, manufacturing and supplying women’s fashion footwear lines. When systemic industry delays hit along with the slowdown in business, the company realized relying solely on the 30-year-old business model parameters and manufacturing was no longer sustainable. Joined by Alterna Capital Solutions team, Phoenix CEO and CFO searched for a custom structure to maximize access to capital, optimize vendor payables, and provide cash flow stability.
Our Solution
2020 was the beginning of Alterna’s relationship with PFG. Our familiarity of the industry helped us waive the field exam and personal guarantee requirement to quickly arrive at an ABL facility of $2.5 million supported by a co-lending agreement with an inventory financing partner. In 2022, with his plan working, Riedman shared a desire to lower PFG’s capital costs and still access more working capital to support growth. In collaboration with the inventory finance partner, we designed a structure that brought inventory finance over to Alterna, improved the borrowing base with an increased credit facility, and offered more competitive rates in support of PFG’s growth plans.
“Great Partner”
“The global pandemic and supply chain disruptions negatively impacted our business performance, and subsequently, our bank relationship. Despite the business climate being highly uncertain, the Alterna team was supportive of our plan. We finished 2021 with a banner year, followed by a strong 2022. Alterna Capital Solutions has been a great partner, responding quickly and constructively to our business needs.”
Jim Riedman
CEO, Phoenix Footwear Group
Measured Results
88% Advance Rate
88% advance rate on accounts receivable
80% Advance Rate
80% advance rate on inventory
Funds to Bridge Gaps
Funding used to bridge gaps between inventory and seasonal sales growth
31% Sales Growth
31% growth in sales during the first half of 2022, over 2021
Partner with Alterna
If your business needs faster, more flexible access to working capital, Alterna is ready to be the partner behind your next move.
