Levitz Furniture Completes New $89 Million Credit Facility

Furniture World Magazine

Levitz Furniture announced that it has entered into an $89 million, three-year revolving credit facility, which will be used by the Company's new management team to reinvigorate one of America's leading specialty retailers of furniture, bedding and home furnishings. The $89 million credit facility was arranged by Banc of America Securities, LLC and Back Bay Capital Funding LLC. It replaces the Company's $55 million credit facility announced in December 2005. "This is an important milestone as we begin to aggressively implement our revitalization plans for this respected brand," said Thomas Baumlin, Chief Executive Officer, Levitz Furniture. "We have further expanded our liquidity position, roughly doubling the Company's potential borrowing ability to ensure we have ample funds to continue to execute our vision to make Levitz Furniture the premier specialty furniture retailer in the markets in which it competes. We are very pleased to be working with Banc of America and Back Bay Capital, two highly respected institutions." Consistent with its revitalization plans, the Company also announced plans to open several new stores: Staten Island, NY, Paramus, NJ and Bronx, NY in the April-May period, Summerlin, NV in early summer, Murrieta, CA in the early fall and Valley Stream, NY in the late fall. April Grand Opening celebrations are planned for the Staten Island, NY, Paramus, NJ, Farmingdale, NY, Hawthorne, CA and S. Sacramento, CA store locations. In addition, the Company announced it was proceeding with its store renovation plans slated for the late spring, including projects in Elmhurst, NY, Paramus, NJ, Anaheim, CA and Victorville, CA. "This is the most recent of many important markers we have hit since we bought the assets of Levitz from bankruptcy. We are pleased to note we have surpassed every major objective we have set since we have owned the company," said Jonathan Duskin, Managing Director of Prentice Capital Management, LP, the new owner of Levitz Furniture. "Our new management team has made tremendous strides in only a few months, restoring trade confidence and rebuilding the Levitz consumer franchise. We would like to thank our many associates, vendors and customers for their support, and we are confident all our partners will prosper as we deliver on our promise to reinvigorate this great retailer." About Levitz Furniture Levitz Furniture is a leading specialty retailer of furniture, bedding and home furnishings in the United States with 78 locations in major metropolitan areas, principally in the Northeast and on the West Coast of the United States as well as its presence on e-commerce site, www.furniture.com. Additional information about the Company and its brands is available at www.levitz.com.