NEW YORK--(BUSINESS WIRE)--Vince Holding Corp. (NYSE: VNCE), a leading global contemporary group, announced that it has closed its Third Lien Credit Facility resulting in $42.3 million in excess availability under its Revolving Credit Facility. The Company also announced that its earnings release for the third quarter ended October 31, 2020, previously scheduled for after-market-close today, has been postponed to December 21, 2020. The Company plans to host a conference call at 4:30 p.m. ET that same day.

Preliminary highlights for the third quarter ended October 31, 2020:

• Net sales decreased 34.0% to $69.0 million as compared to $104.5 million in the same period last year.
• Gross margin rate was 45.9% compared to 48.8% in the same period last year.
• On December 11, 2020 the Company closed the Third Lien Credit Facility resulting in excess availability of $42.3 million.

David Stefko, Interim Chief Executive Officer and Chief Financial Officer, commented, “The third quarter experienced sequential improvement in direct-to-consumer sales and gross margin, which continued into the fourth quarter as we entered the holiday season. At the same time, we continued to tightly manage our expenses. While we expect a continued recovery in our business, we successfully closed the Third Lien Credit Facility as well as completed amendments to our existing Revolving and Term Loan Credit Facilities. As we continue to navigate the near term headwinds resulting from COVID, these steps enhanced our liquidity position to support the continued execution of our strategies. We have been very pleased to see continued market share gains in our Vince brand and look forward to the continued execution of our multi-pronged growth strategy. For Rebecca Taylor, we remain encouraged by the opportunity to replicate the Vince recovery and growth playbook. We look forward to providing more detail on our earnings call.”

Financing

On December 11, 2020, the Company entered into a $20 million Third Lien Credit Facility with SK Financial Services, LLC (“SK Financial”). Interest and fees under the Third Lien Credit Facility are payable in kind. Proceeds from this facility were used to pay down the borrowings under the Company’s existing Revolving Credit Facility. SK Financial is an affiliate of Sun Capital Partners, Inc. (“Sun Capital”), whose affiliates own approximately 72% of the Company’s common stock. The Third Lien Credit Facility was reviewed and approved by the Special Committee of the Company’s Board of Directors, consisting solely of directors not affiliated with Sun Capital, which was represented by independent legal advisors.

In addition, on December 11, 2020, the Company entered into amendments to its existing Revolving Credit Facility and to its existing Term Loan Credit Facility. The amendments, among others, extended the period during which the testing under a financial covenant is suspended, lowered the fixed charge coverage ratio to be maintained thereafter, extended the applicability of certain revised eligibility criteria for trade receivables and waived certain term loan amortization payments. For more information about the Third Lien Credit Facility as well as the amendments to the Term Loan Facility and the Revolving Credit Facility, please refer to the Company’s current report on Form 8-K filed with the Securities and Exchange Commission concurrently with this release.

Preliminary Results

The results presented in this press release remain subject to change following the completion of quarterly financial closing procedures and therefore are preliminary. The Company recently experienced a significant shortage in staffing due to the additional burdens relating to COVID-19. Despite the Company hiring additional temporary staffing, the turnover and remote working has delayed the preparation of the required financial statements and related disclosures, including lease accounting adjustments related to the COVID-19 impact on our existing leases. The Company plans to file a notification of late filing on Form 12b-25 with the Securities and Exchange Commission with respect to its Quarterly Report (the “Quarterly Report”) on Form 10-Q for the fiscal quarter ended October 31, 2020. The Company expects to release its third quarter financial results on December 21, 2020 in conjunction with the Quarterly Report.

2020 Third Quarter Earnings Conference Call

A conference call to discuss the third quarter results will be held on December 21, 2020, at 4:30 p.m. ET, hosted by Vince Holding Corp. Interim Chief Executive Officer and Chief Financial Officer, David Stefko. During the conference call, the Company may make comments concerning business and financial developments, trends and other business or financial matters. The Company's comments, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.

Those who wish to participate in the call may do so by dialing (833) 392-0629, conference ID 6757388. Any interested party will also have the opportunity to access the call via the Internet at http://investors.vince.com/. To listen to the live call, please go to the website at least 15 minutes early to register and download any necessary audio software. For those who cannot listen to the live broadcast, a recording will be available for 12 months after the date of the event. Recordings may be accessed at http://investors.vince.com.

ABOUT VINCE HOLDING CORP.

Vince Holding Corp. is a global contemporary group, consisting of three brands: Vince, Rebecca Taylor and Parker. Vince, established in 2002, is a leading global luxury apparel and accessories brand best known for creating elevated yet understated pieces for every day effortless style. Known for its range of luxury products, Vince offers women’s and men’s ready-to-wear, footwear and accessories through 48 full-price retail stores, 15 outlet stores, and its e-commerce site, vince.com and through its subscription service Vince Unfold, www.vinceunfold.com, as well as through premium wholesale channels globally. Rebecca Taylor, founded in 1996 in New York City, is a high-end women’s contemporary lifestyle brand inspired by beauty in the everyday. The Rebecca Taylor collection is available at 10 retail stores, through our e-commerce site at rebeccataylor.com and through its subscription service Rebecca Taylor RNTD, www.rebeccataylorrntd.com, as well as through high-end department and specialty stores in select international markets. Parker, founded in 2008 in New York City, is a contemporary women’s fashion brand that is trend focused. The Parker collection is available at high-end department and specialty stores in select international markets. Please visit www.vince.com for more information.