Trans World Entertainment Corporation Announces Closing of the Sale of its FYE Segment and Entry into a Credit Facility for i...
February 20 2020 - 4:40PM
Trans World Entertainment (Nasdaq – TWMC, “TWEC” or the “Company”)
announced today that it has closed the previously-announced sale of
substantially all of the assets constituting its For Your
Entertainment (“FYE”) segment to a subsidiary of Sunrise Records
and Entertainment Ltd. (“Sunrise”), the parent of Sunrise Records
in Canada and HMV Records in the United Kingdom, for $10 million in
cash, subject to net inventory and other adjustments, plus the
assumption of certain liabilities (the “Transaction”).
The Transaction was unanimously approved by the
Company’s board of directors on January 23, 2020, and was approved
by more than two-thirds of the Company’s shareholders at a special
shareholders meeting held on February 17, 2020. All of
the proceeds from the Transaction were used to repay outstanding
indebtedness and to satisfy other unassumed liabilities.
Going forward, the Company plans to focus on the
operation of its wholly owned subsidiary, etailz, Inc., which has
today entered into a loan and security agreement with Encina
Business Credit, LLC of up to $25 million. The facility will
be primarily used to provide capital for etailz to achieve its
growth goals, which includes further developing its software and
services offerings, supporting inventory expansion, and expanding
into new marketplaces and geographies.
Michael Feurer, Trans World’s CEO, stated, “The
sale of our FYE segment has put our stores and employees in the
best position to continue forward and build upon an almost 50 year
legacy. With respect to etailz, we believe marketplace
selling, technology, and advertising have never been more important
to global retailing. The securing of the credit facility for
etailz is a positive and important first step to support the growth
of etailz, which will remain our focus for the future.”
About etailz
etailz is a leading online marketplace retail
expert, service, and software provider that uses a data driven
approach to digital marketplace retailing. Through the use of
proprietary software and e-commerce insight, etailz identifies new
distributors and wholesalers, isolates emerging product trends, and
optimizes price positioning and inventory purchasing decisions. A
leading Amazon marketplace retailer that partners with brands and
employs advanced technology and strategies to grow sales both
domestically and internationally, etailz also partners with
companies to expand their brand on eBay, Jet and Walmart.
Cautionary Statement Regarding Forward-Looking
Statements
This document includes forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Certain statements in this communication are
forward-looking statements. The statements contained in this
document that are not statements of historical fact may include
forward-looking statements that involve a number of risks and
uncertainties.
We have used the words “anticipate”, “believe”,
“could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”,
“project”, and similar terms and phrases, including references to
assumptions, in this document to identify forward-looking
statements. These forward-looking statements are made based on
management’s expectations and beliefs concerning future events and
are subject to uncertainties and factors that could cause actual
results to differ materially from the results expressed in the
statements. The following factors are among those that may cause
actual results to differ materially from the Company’s
forward-looking statements: the risk that the Transaction may
adversely affect the Company’s business and the price of the
Company’s common stock; the effect of the closing of the
Transaction on the Company’s business relationships, operating
results and business generally; risks that the Transaction disrupts
current plans and operations and the potential difficulties in
employee retention as a result of the Transaction; the outcome of
any legal proceedings that may be instituted against the Company
related to the Transaction; unexpected costs, charges, expenses, or
liabilities relating to the Transaction; the Company’s ability to
operate as a going-concern following the closing of the
Transaction; and other risks described in the Company’s filings
with the SEC, such as its Quarterly Reports on Form 10-Q and Annual
Reports on Form 10-K.The reader should keep in mind that any
forward-looking statement made by us in this document, or
elsewhere, pertains only as of the date on which we make it. New
risks and uncertainties come up from time-to-time and it’s
impossible for us to predict these events or how they may affect
us. In light of these risks and uncertainties, you should keep in
mind that any forward-looking statements made in this document or
elsewhere might not occur.
|
|
Contact: |
|
Trans World Entertainment |
Financial Relations Board |
Edwin Sapienza |
Marilynn Meek |
Chief Financial Officer |
(mmeek@frbir.com) |
(518) 452-1242 |
(212) 827-3773 |
Trans World Entertainment (NASDAQ:TWMC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Trans World Entertainment (NASDAQ:TWMC)
Historical Stock Chart
From Apr 2023 to Apr 2024