RETAIL & RESTAURANT GROWTH CAPITAL, L.P. PROVIDES FINANCING FOR BIKES USA
DALLAS - MARCH 27, 1998 -- Retail & Restaurant Growth Capital, L.P., ("RRGC"), a Federal Licensee under the Small Business Investment Act of 1958, announced today that it has made a $3 million commitment to Washington, D.C.-based Bicycle Exchange, Inc. (d/b/a Bikes USA), a privately held specialty retailer of bicycles and bicycling merchandise. Bikes USA is the first multi-market bicycle superstore chain and is one of the largest specialty bicycle retailers in the United States. The Company currently operates fourteen large format "superstores" under the name "BIKES USA" and four smaller stores under the name "BIKES USA Express." The Company's goal is to establish BIKES USA as the nationwide category dominant specialty retailer in the bicycle industry.
The Company was founded in 1978 by Jim Bellas, Chairman, and has built a seasoned retail management team, including Marc Willson, CEO, and Randy Gillett, CFO. Marc Willson said, "We are excited about the future of our concept and how it will change the experience of buying a bicycle. Our new relationship with RRGC will allow us to reach our goal of being America's bicycle superstore, making cycling fun, safe, affordable and available for a maximum number of people across the nation."
RRGC's investment, along with additional equity provided by existing shareholders, Phillips-Smith Specialty Group and InterWest, and senior financing provided by Paragon will be used to open new stores and for general corporate purposes. The company currently offers premier brand names, including Trek, Fisher; Mongoose; Lite Speed; Bianchi; LeMond; GT; Magna; Roadmaster and Huffy. Bikes USA also offers a full line of apparel, accessories and components. In addition, each Bikes USA store offers a full range of repairs and maintenance at its professionally managed Service Center.
RRGC General Partner Ray Hemmig believes, "Bikes USA is a talented and well-positioned specialty retailer that is developing an exciting concept. Bikes USA offers an unparalleled selection of brand names, price points and unmatched levels of customer service to the bicycling novice, casual rider and cycling enthusiast alike."
Jim Bellas says, "In addition to the funding, we are excited to have RRGC's experience and expertise." RRGC provides debt capital and strategic counsel to emerging retail and restaurant businesses that have exhibited a potential for accelerated growth and expansion. Dallas-based RRGC is the first firm of its kind to specialize in providing debt securities to the retail and food-service industries, both of which have traditionally had limited access to debt and equity markets.
RRGC's portfolio companies, include The Colorado Pen Company, Quizno's Classic Subs, Elizabeth Arden Red Door Salons, FoodStar Restaurant Group, Texas Land and Cattle Company and Mobile Car Care.