RETAIL & RESTAURANT GROWTH CAPITAL, L.P. PROVIDES FINANCING FOR THE ART STORE, INC.
DALLAS - SEPTEMBER 21, 1998 -- Retail & Restaurant Growth Capital, L.P., ("RRGC"), a Federal Licensee under the Small Business Investment Act of 1958, is pleased to announce its investment in The Art Store, Inc. The Art Store is a privately-held chain of art material supply stores headquartered in Massachusetts. The Company currently operates six stores in California and a 17,000 square-foot New York City flagship in the Village area, an epicenter of art materials sales.
The Art Store's goal is to establish itself as the nationwide category dominant specialty retailer in the art supply industry. The Art Store was purchased in 1995 by CEO and President George Granoff, former President and Chief Operating Officer of Ames and Bradlees', two multi-billion dollar mass merchant retailers. Granoff is also a graduate of the University of Pennsylvania's Wharton School of Business. A fine art approach is applied to The Art Store's unique operating strategy as exemplified by the Company's motto, "Real supplies, real artists."
In addition to retail stores, The Art Store has developed the first comprehensive art material web site (located at http://www.artstore.com) which currently features 8,000 unique items available for commerce, but will offer over 25,000 items in the near future. "Hot links" to manufacturers are presently being developed in order to offer consumers additional product information. Future promotional events will also be featured on the site.
RRGC General Partner Joseph Harberg believes, "The Art Store is a talented and well-positioned specialty retailer that is developing a novel and exciting concept. The Art Store offers an unparalleled selection of brand names, price points and unmatched levels of customer service to all segments of the artist industry."
RRGC provides debt capital and strategic counsel to emerging retail and restaurant businesses that have exhibited a potential for accelerated growth and expansion. Organized in 1996, 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, other than The Art Store, include The Colorado Pen Company, Quizno's Corporation, Elizabeth Arden Red Door Salons, Left at Albuquerque, FoodStar Restaurant Group, America's Service Station, Texas Land & Cattle Steakhouse, and Bikes USA.