Hit or Miss Receives $12M DIP Financing from Paragon Capital; Women's Clothing Retailer Files for Bankruptcy, Obtains Support From Retail Lender

Business Wire, Nov 22, 2000

Business/Technology Editors

NEWARK, N.J.--(BUSINESS WIRE)--Nov. 22, 2000

Specialized retail lender Paragon Capital LLC, of Needham, Mass., announced today that it has provided a $12 million line of credit to Hit or Miss Inc., of Stoughton, Mass., one of the nation's best-known women's apparel retailers. Hit or Miss filed for Chapter 11 bankruptcy on Friday, Nov. 17, in a New Jersey Federal Bankruptcy Court.

"This line of credit will help us as we reorganize and position ourselves for the future," said Hit or Miss President & CEO Donna Moore. "Paragon Capital, in our view, redefined the term responsiveness in comparison to other lenders I have dealt with. Our facility, from start to finish, was completed in less than seven days. This is a reflection of Paragon's retail expertise and its ability to think like a strategic financial partner."

Hit or Miss is a privately held (80% owned by Access Capital Partners with the remaining 20% owned by directors/management) retailer of women's off-price fashion clothing and accessories. The company operates more than 200 leased stores nationwide with the majority of locations located on the East Coast.

"Hit or Miss has maintained a long-standing name in the retail marketplace of the Northeast," said Paragon President & COO Andrew Moser. "We're pleased to help the company by providing the liquidity necessary to help reposition the business and redefine a consistent merchandising strategy."

"This financing will give Hit or Miss the liquidity they need to reorganize successfully," added Paragon CEO Stewart Cohen.

Paragon Capital:

Based in Needham, Mass., with offices in Philadelphia, Paragon Capital is an asset-based lender to retailers throughout North America. Paragon has experienced dramatic growth since it was founded in 1997, completing almost $200 million in new financing with companies like: The Art Store, The Home Company, Harvey Electronics, Golf America, Pacific Eyes & T's and The White House. One of the main reasons for Paragon's success is that, as retailers and merchants with lending expertise, the management team applies a true merchant's perspective in lending to retailers. As Paragon's business booms, the company is defining a new specialized lending niche and quickly becoming part of leading-edge developments in the retail industry.

Paragon Capital is a partnership between one of America's premier "boutique" asset valuation firms, The Ozer Group LLC of Needham, Mass., and a leader in the asset-based lending industry, Foothill Capital Corporation of Los Angeles. Foothill is a subsidiary of Wells Fargo & Company, a $202 billion financial services company. With the backing of Wells Fargo and Foothill, Paragon functions autonomously as an entrepreneurial company that provides financing solutions to North American retail and consumer products companies.