Salus Capital Partners, LLC announced it has provided a $65 million Debtor-in-Possession (DIP) Credit Facility to HMX Group, a leading designer, manufacturer, and marketer of men’s and women’s business and leisure apparel. The DIP financing will be used by HMX Group to provide working capital as the Company operates under Chapter 11 of the U.S. Bankruptcy Code.
“We are pleased to provide a DIP facility to HMX Group that provides the Company with the liquidity, time and a runway to effectuate a transaction that seeks to maximize value for all of the Company’s constituencies – its employees, management, shareholders, vendors, and the estate,” said Andrew H. Moser, President of Salus Capital. “HMX Group has our unwavering support during this critical period and we are delighted that our transaction will provide them with the necessary resources to run an efficient and orderly sale process.”
HMX Group is a leading tailored clothing company, with a diverse portfolio of brands, both owned and licensed, that are distributed through domestic and international retail channels. The privately held company is home of men’s and women’s luxury, specialty and mainstream apparel brands such as Argyleculture, Austin Reed, Bobby Jones, Christopher Blue, Hart Schaffner Marx, Hickey Freeman, Jag Jean, Misook, and Worn.
Since launching in January 2012, Salus has provided loans to 16 companies throughout North America with circumstances ranging from turnarounds to emerging growth situations. To date, Salus has also provided three DIP financings to RoomStore, Inc., StraussAuto and now HMX Group.
Salus Capital is a provider of senior secured asset-based loans to the small and middle-market across a variety of industries with additional complementary financing throughout the capital structure.