On March 13, 2025, the Company,
as borrower, and certain other
domestic subsidiaries, as borrowers and
guarantors, entered
into a
Credit Agreement
(the “ABL
Credit Agreement”)
and related
loan documents,
by
and
among
the
Company,
certain
other
of
the
Company’s
domestic
subsidiaries,
and
Wells
Fargo
Bank,
National
Association,
as
the
lender
(the
“Lender”),
to
establish
an
asset-based
revolving
credit
facility (the “ABL
Facility”) in an
amount up to
$
35.0
million. The proceeds from
the ABL Facility
may
be used to provide funding for ongoing working capital and general corporate
purposes.
The ABL Credit Agreement is
committed through March 2028 and
is secured primarily by inventory
and
third-party credit
card receivables.
There
were
no
borrowings outstanding
and the
availability under
the
30.0
million before
giving effect
to a
$
3.0
million outstanding
letter of
credit that
reduced
borrowing availability
to $
27.0
million as
of May
2, 2026
and January
31, 2026.
The weighted
average
interest rate under the credit facility
was
zero
at May 2, 2026 and
January 31, 2026 due to
no
borrowings.