TV and online retailer Evine Live Inc. says it has taken a $17 million loan to bolster the company’s liquidity one month after it announced a management shakeup.
The loan from Great American Capital Partners, LLC, has a Libor benchmark interest rate, which is a benchmark interest rate set by banks for short term loans, plus 11% and matures in March 2021, the company says.
Interim CEO Bob Rosenblatt says the loan “enables us to more effectively operate in a dynamic retail environment.” A spokeswoman for Evine, No. 118 in the Internet Retailer 2015 Top 500 Guide, declined further comment.
In February, Evine announced that CEO Mark Bozek and chief strategy officer Russell Nuce were leaving the company and board chairman Bob Rosenblatt would become interim CEO. Whoever takes over the CEO’s job will be the fourth person to hold the job in three years. Bozek took over as CEO in June 2014, replacing Keith Stewart.
Evine Live has posted steady but slow online sales growth over the past five years, according to Top500Guide.com, reaching an Internet Retailer-estimated $300.9 million in web sales in 2014 from $231.7 million in 2010. Its five-year compound annual growth rate is 6.75%. Evine Live projects net revenue of $209-$212 million for the fiscal fourth quarter of 2015. The company will release its fourth quarter and fiscal 2015 figures on March 23.
The company last year launched proprietary brands that included Lisa Vanderpump Estate Jewelry, FrescoWare by Scotto and Peace & Love Jewelry by Nancy Davis.