San Diego Business Journal

Phoenix Footwear Reports Loss, New Borrowing Power

By Brad Graves Tuesday, August 21, 2012

Phoenix Footwear Group Inc., which produces the SoftWalk and Trotters shoe brands, recently reported a net loss of $470,000 on net sales of $3.15 million in the quarter ended June 30. One year ago, the Carlsbad-based company reported a net loss of $215,000 on net sales of $3.2 million.

The company also announced new bank financing through Alabama-based AloStar Bank of Commerce. Phoenix Footwear’s three-year loan and security agreement provides for up to $7.25 million in borrowing capacity. The loan has two parts: first, a secured first lien revolving credit facility of up to $7 million with an initial yearly interest rate of 7.5 percent, and second, a secured first lien term loan of $250,000 with an initial yearly interest rate of 8.5 percent.

The company noted its new financing deal provides it with additional working capital “at significantly reduced interest rates.”

Phoenix reported cash and cash equivalents of $27,000 on June 30, down from $41,000 at the end of 2011.

Stock in the company trades over the counter with the symbol PXFG. In the last year the stock price has ranged from 8 cents to 40 cents.