Abercrombie & Fitch to draw $210 million under revolver

By Marisa Wong

Los Angeles, March 26 – Abercrombie & Fitch Co. said it initiated on March 25 the process of borrowing $210 million under its senior secured asset-based revolving credit facility to improve its cash position.

Abercrombie & Fitch said the drawdown is a precautionary measure.

As of Feb. 1, the company had $671 million in cash and cash equivalents, according to a press release.

Last week the company also withdrew the majority of excess funds from its Rabbi Trust, giving it about $50 million of additional cash.

Chief executive officer Fran Horowitz said in the press release, “We entered this period of unprecedented uncertainty with a healthy liquidity position and are taking immediate, aggressive and prudent actions, including reevaluating all expenditures to enhance our ability to meet the business’ short-term liquidity needs, in order to best position the company for our key stakeholders, including our associates, customers and shareholders.

“We are partnering with our vendors, landlords, and lenders to preserve liquidity and mitigate risk during the Covid-19 outbreak,” Horowitz said.

Abercrombie & Fitch is a clothing retailer based in New Albany, Ohio.

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