Designer Brands Inc., the parent of DSW, announced the amendment of its $400 million revolving line of credit. This amendment, coupled with support received from vendor partners and landlords, helps to fortify the company’s near-term liquidity as it addresses the continuing impacts of COVID-19 and begins to reopen stores in select geographies.
As a result of the amendment, the company is restricted from paying dividends and making share buybacks. Additionally, the amendment redefines the components for calculating the leverage ratio and fixed charge coverage ratio to adjust for certain temporary impacts due to COVID-19.
Chief Executive Officer Roger Rawlins, stated, “We are committed to preserving the long-term sustainability of our business during these unprecedented times, and these actions will provide greater financial flexibility and liquidity for our operations. We continue to leverage our strategic pillars of delivering differentiated products, offering differentiated experiences and focusing on new growth opportunities to serve our customers while navigating the COVID-19 pandemic.”
Further details about the amendment to Designer Brands’ revolving line of credit are included in the Company’s Annual Report on Form 10-K filed with U.S. Securities and Exchange Commission (“SEC”) on May 1, 2020.
Designer Brands operates a portfolio of retail concepts in nearly 1,000 locations under the DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse banners and services footwear departments in the U.S. through its Affiliated Business Group. Designer Brands designs and produces footwear and accessories through Camuto Group, a leading manufacturer selling in more than 5,400 doors worldwide. Camuto Group owns licensing rights for the Jessica Simpson footwear business, and footwear and handbag licenses for Lucky Brand and Max Studio. In partnership with a joint venture with Authentic Brands Group, Designer Brands also owns a stake in Vince Camuto, Louise et Cie, Sole Society, CC Corso Como, Enzo Angiolini and others.
