Steven Madden Ltd. knows how to support its retailers.
Bakers Footwear Group announced on Friday it had secured a $5 million debt and equity investment from Madden that it will use as working capital. The note carries with it interest at 11 percent, with principal payments due from 2017 to 2020.
The loan is subordinate to Bakers’ other outstanding debt.
As part of the agreement, Madden was issued 1,844,860 shares of common stock, bringing its equity interest in Bakers to just shy of 20 percent.
“We are pleased to expand our 20-year partnership with Steve Madden, one of our largest suppliers, to include a financial investment,” said Bakers CEO Peter Edison in a statement. “This investment has no financial covenants or sourcing, management or governance conditions of any kind and represents a strong vote of confidence in our business.”
For his part, Madden chairman and CEO Edward Rosenfeld said he thought the deal was a win-win for both companies. “Our companies have enjoyed a long-standing relationship, and we look forward to continued success,” he said. “We believe this investment will be beneficial to both of our companies.”