A.k.a. Brands refinances to strengthen balance sheet

A.k.a. Brands, the parent company of Princess Polly and Culture Kings, has refinanced its credit facility in a bid to strengthen its balance sheet and enable flexibility when pursuing strategic priorities.

Through the amended and restated credit agreement, the group has secured an 85 million dollar term loan and around 35 million dollars in revolving credit capacity, replacing its existing credit facility.

The company said in a press release that it has extended the maturity of its debt – both its loan and credit facility – to October 14, 2028.

Speaking on the news, Kevin Grant, chief financial officer for a.k.a. Brands, said: “We are pleased to announce this refinancing, which extends the maturity of our credit facility by two years.

“This financing agreement provides us with additional balance sheet flexibility to execute our strategic priorities and create long-term value for our shareholders.”

The refinancing comes amid solid financial performance for the group, which most recently reported a net sales increase of 7.8 percent in the second quarter of the current financial year, marking its fifth consecutive quarter of sales growth.

The performance is a result of various strategic initiatives carried out across the business, as seen in the ongoing retail expansion of Princess Polly, for example, which is expected to operate 13 locations by the year-end, with plans to open eight to ten additional stores in 2026.