Apparel and gift designer and importer Nitches Inc. sold outdoor retailer Backwoods Equipment Company back to its CEO Sept. 30, 2008, according to a report Nitches filed Thursday.
Under the terms of the agreement, Nitches returned all outstanding shares of Backwoods Equipment Company Corporation it bought from Backwoods CEO Jennifer Mull in February in exchange for 360,000 shares of Nitches stock held by Mull. Backwoods was Nitches first investment in specialty retail and its reversal demonstrates how the credit crisis has spread beyond Wall Street and into the retail sector even as retailers brace for a tough fourth quarter.
“Weve operated Backwoods since Feb. 1, 2008 with the intention of expanding the retail business,” read the report filed by Nitches Inc. “However, the recent uncertainty in the credit markets has rendered it more difficult and costly to finance the working capital requirements of the business and secure desired expansion capital. In connection with the Exchange, all liabilities associated with Backwoods are being transferred with the business. In addition Ms. Mull has agreed to indemnify us for any liabilities arising out of the operation of that business.”
In an interview Thursday in Boston, Mull told The B.O.S.S. Report Backwoods sales continued to grow at a double-digit pace over last year. She said she secured new financing from a bank she has used for years and is moving forward with plans for a new store in St. Louis, e-commerce upgrades and apparel and leather luggage launches.
For more details, read The B.O.S.S. Report Monday.
