Goedeker’s Acquisition of Appliances Connection Stays on Track—Closes $5M Financing, Strengthening Working Capital to Acquire Inventory to Meet Rising Consumer Demand
1847 Goedeker Inc. (GOED) has closed two senior secured promissory notes with a total of $5 million in gross proceeds, which includes approximately $4.59 million in net proceeds. The financing is intended to bolster inventory as the company prepares for its acquisition of Appliances Connection. CEO Doug Moore noted strong orders and sales momentum, with expectations to complete the acquisition by the second quarter. This funding aims to address supply constraints and support growing customer demand. Further details are available in the recent 8-K filing.
- Secured $5 million in financing to increase inventory.
- Strengthened sales momentum leading up to the Appliances Connection acquisition.
- Anticipation of completing the acquisition in Q2.
- Ongoing product supply constraints in the industry.
1847 Goedeker Inc. (NYSE American: GOED) (“Goedeker’s” or the “Company”), a one-stop e-commerce destination for appliances and furniture, announced today the closing of two
“We are continuing to build on our orders and sales momentum leading into our acquisition of Appliances Connection and remain on target to complete the transaction in the second quarter. The underlying trends that have driven our double and triple-digit growth in recent months remain persistent, and we are in a great position to capitalize on the growing opportunities,” stated Doug Moore, CEO of Goedeker’s.
“In advance of the pending acquisition of Appliances Connection, Goedeker’s chose to move quickly to buy more appliance inventory to meet the continued rising demand through the online channel. While product supply constraints in the industry remain ongoing, this financing gives us the capital to further expand our inventory and satisfy more customers in the near term,” continued Moore.
Albert Fouerti, President, Appliances Connection, stated, “We continue to share our excitement and support for the combined companies and look forward to working as one team. As we shared in our most recent press release, record orders and consumer interest at both companies is creating and will create a powerful force in the consumer appliance business.”
Full details of the financing are available in an 8-K filed on March 25, 2021.
About 1847 Goedeker Inc.
1847 Goedeker Inc. is an industry leading e-commerce destination for appliances, furniture, and home goods. Since its founding in 1951, Goedekers has transformed from a local brick and mortar operation serving the St. Louis metro area to a respected nationwide omnichannel retailer that offers one-stop shopping for national and global brands. While the Company maintains its St. Louis showroom, over
About Appliances Connection
Founded in 2000, Appliances Connection is one of the leading retailers of household appliances with a 200,000 square foot warehouse in Hamilton, NJ and a 23,000 square foot showroom in Brooklyn, New York. Appliances Connection carries many household name brands, including Bosch, Cafe, Frigidaire Pro, Whirlpool, LG, and Samsung, and also carries many major luxury appliance brands such as Miele, Thermador, La Cornue, Dacor, Ilve, Wolf, Jenn-Air, Viking among others. Appliance Connection provides appliance installation services and appliance removal services. In addition to selling appliances, it also sells furniture, fitness equipment, plumbing fixtures, televisions, outdoor appliances, and patio furniture, as well as commercial appliances for builder and business clients.
Forward Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on 1847 Goedeker Inc.’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the public offering filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and 1847 Goedeker Inc. undertakes no duty to update such information except as required under applicable law.
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FAQ
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