- Liquidation World Inc. has arranged a $20-million asset-based loan facility from the Royal Bank of Canada, with an option to increase this to $25-million.
The three-year credit line replaces a $20-million demand facility, providing a lower interest rate and more flexible use of funds, the 99-store chain said Monday.
"Since May, we have taken steps to reduce expenses, increase cash, and have significantly changed the mandate and structure of our buying team," stated CEO Jonathan Hill.
"With these changes, we are seeing evidence that our business has stabilized and we expect to see improvements to our business in the future."
Liquidation World, whose share price has fallen in the past year from $3.79 to the 70-cent level, disclosed last week that revenue from continuing operations in its latest quarter was down 7.1 per cent from a year earlier to $43.2-million. However, same-store sales edged up 0.5 per cent.
Mr. Hill said Monday that the new credit arrangement "highlights a growing level of confidence in our business and the quality of our assets, and its consummation is an important milestone on our road to improved performance."