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DECORIZE SECURES FACTORING AND FINANCING FROM CIT; COMPANY TAKES STEPS TO PROTECT ACCOUNTS RECEIVABLE AND ENHANCE WORKING CAPITAL
SPRINGFIELD, Mo., Feb. 4 /PRNewswire-FirstCall/ -- Decorize (Amex: DCZ - News), an emerging growth provider of direct sourcing solutions for the global home decor market, announced today that it entered into a factoring agreement with CIT Commercial Services, a unit of CIT Group Inc. (NYSE: CIT - News). This agreement is a risk-management tool that helps Decorize to protect its accounts receivable from bad-debt losses. CIT will also provide Decorize with up to $1 million in additional inventory financing and letter of credit financing. "We are delighted to have this opportunity to work with Decorize," said John F. Daly, President of CIT Commercial Services. "This relationship reinforces our commitment to serving the home furnishings industry and helping provide seamless flow of funds and information between companies like Decorize and their retail customers." Jon Baker, Decorize's CEO, said "The CIT renewable revolving financing agreement provides us several credit facilities at attractive rates and under attractive terms: factoring, advances on receivables, letters of credit, and inventory financing. These new facilities significantly expand our present credit availability and enhance our ability to finance our ongoing growth. We look forward to our new relationship with CIT." About CIT Commercial Services CIT Commercial Services is a unit of CIT Group Inc. and is one of the nation's leading providers of factoring, accounts receivable management, credit protection, and lending services. Commercial Services specializes in serving apparel, footwear, textile, furniture, home furnishings and other industries that sell into retail channels of distribution. About Decorize, Inc. Decorize, Inc. is the proprietor of a breakthrough sourcing, logistics and technology model that reduces the non-value added costs that have traditionally been channeled into the home furnishings category. The company strips away layers of handling and storage steps to deliver products directly from the Far East to the doors of retailers, at unprecedented cost savings. Decorize has served more than 2,000 small and large retail accounts, including national brand names Dillard's, Rooms To Go and Sears -- The Great Indoors. The company's business model affords aggressive savings for large retailers and also for small retailers. Decorize deploys a "one-price" approach at Decorize.com. For the first time in the industry, small retailers can ship directly from the Far East with a minimum order of $1,000 while enjoying cost savings of up to 30% over wholesale prices. Decorize offers over 10,000 SKUs through its brands: Faith Walk, GuildMaster and decorize.com. Additional information on the company and its products can be found at http://www.decorize.com/. Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the company's products, increased levels of competition for the company, new products and technological changes, the company's dependence on third-party suppliers, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission. |
