GB Merchant Partners Provides Quaker Fabric with $24.6 Million.

Press Release
Quaker Fabric, a leading designer, manufacturer and worldwide marketer of woven upholstery fabrics for residential furniture, is weaving a new path to profitability thanks in part to a set of loans provided by GB Merchant Partners, the debt affiliate of Gordon Brothers Group.

Under the new financing arrangement, which closed earlier this month, GB Merchant Partners has provided two senior secured term loans amounting to a combined $24.6 million. The loans, which are secured by Quaker’s real estate, machinery and equipment, are pivotal in helping the publicly-traded Quaker Fabric Corporation (QFAB) deliver on its restructuring plan.

“The loans from GB Merchant Partners will help restore the company to profitability,” said Larry A. Liebenow, President and Chief Executive Officer of Quaker Fabric. “We look forward to continuing our restructuring efforts and strengthening our position of international leadership in our industry.”

Quaker Fabric began operations in 1945 as a small, family-owned fabric mill. Today, it is one of the largest producers of Jacquard upholstery fabric in the world and one of the undisputed leaders in the $2-billion-plus U.S. upholstery fabric industry. The company also produces specialty yarns, which it both uses in its fabrics and sells to other fabric manufacturers.

“Our loans provided Quaker Fabric with the working capital needed to successfully deliver on its turnaround plan,” said D. Michael Murray, Managing Director, GB Merchant Partners. “We are very excited about working closely with the company.”

Like Quaker Fabric, other companies can benefit from GB Merchant Partners continual expansion into the non-retail sector. GB Merchant Partners not only helps companies in the midst of restructuring, but also provides junior secured/mezzanine financing to healthy companies at all stages of growth.

About GB Merchant Partners
GB Merchant Partners provides debt financing to private and public middle-market companies in the retail, consumer products distribution, wholesale and manufacturing sectors. Loans of up to $50 million are typically structured as junior secured loans (Tranche B) or mezzanine loans that can be used by borrowers for working capital to fund long-term growth, execute an acquisition or facilitate a turnaround. As a Gordon Brothers Group company, GB Merchant Partners has the benefit of an unmatched understanding of asset values and business operations gained through over a century of industry experience in dispositions and appraisals.

About Gordon Brothers Group
Founded in 1903, Gordon Brothers Group is an advisory, restructuring and investment firm specializing in the retail, consumer products, real estate and industrial sectors. The firm provides a wide variety of services to companies at times of growth and restructuring. Gordon Brothers Group capabilities include asset valuations, dispositions and appraisals, real estate consulting and acquisitions, retail store operations, lending, equity investments, restructuring and advisory services. The firm has unparalleled expertise in assisting healthy and distressed companies in maximizing the value of under-performing assets and expanding operations through new products and distribution channels. Gordon Brothers Group resources include over 200 professionals and 175 field experts, including former CEOs, CFOs, merchants and executives in offices worldwide. During the past three years, Gordon Brothers Group has appraised over $100 billion of assets, managed more than 7,000 stores, sold more than $10 billion of inventory and restructured or sold over 120 million square feet of retail space. In addition, Gordon Brothers Group currently owns and manages over 1,600 stores through various portfolio companies including Things Remembered, Andrew Marc, Spencer Gifts, and Laura Secord.