Levitz Home Furnishings, Inc. Announces Closing of Financing Agreement with GE Commercial Finance

Furniture World News

Levitz Home Furnishings, Inc. announced that it has formally closed its previously announced financing agreement with GE Commercial Finance to provide $20 million of additional financing to the Company. This financing, first announced as a commitment on May 3, 2005, is provided as a term loan under the terms of an existing loan facility and increases the facility to $80 million. The Company will use this capital in pursuit of its plans to achieve a stronger and growing position in the home furnishings market in the Northeast and on the West Coast of the United States. Separately, the Company announced that it continues to strengthen its management team with the appointment of Ward Dingmann, 38, as Senior Vice President of Logistics and Distribution. Mr. Dingmann was previously Chief Operating Officer of third party logistics provider AtomicBox Logistics, where he spent the last 15 years in various distribution and logistics operating and consulting positions. Mr. Dingmann began his career as a logistics project manager at Wal-Mart Stores, Inc. "We are pleased to be making these positive announcements today," said Levitz Home Furnishings President and acting Chief Executive Officer C. Mark Scott. "The new financing from GE, together with the $20 million in additional equity capital received from our majority equity owner, Resurgence Asset Management, will be a tremendous support to the business revitalization program we announced earlier this month. Furthermore, adding Ward Dingmann to our team will greatly assist our efforts to improve our customer service and operating efficiency." In addition to Ward Dingmann, Levitz Home Furnishings has added a number of experienced industry executives to its senior leadership. The recent appointments include Chief Operating Officer Sandeep Chugani, 38, Senior Vice President-Supply Chain Shishir Agarwal, 35, and Senior Vice President- Strategic Sourcing and Direct Import Operations Hemant Kalbag, 31. "Ward Dingmann will help us improve efficiencies throughout our distribution network," Scott added. "His appointment -- along with the other executives we have brought to the Company in recent months -- reflects our Board's commitment to attracting the best talent to improve all facets of our business." About Levitz Home Furnishings, Inc. Levitz Home Furnishings, Inc. is a leading specialty retailer of furniture in the United States with more than 110 locations in major metropolitan areas principally the Northeast and on the West Coast of the United States. Additional information about the Company and its brands is available at http://www.levitz.com and http://www.seamans.com