STE-JULIE, QUEBEC, October 30, 2008 – Groupe Bikini Village inc. (TSX: GBV) (the “Corporation”) is replacing the $3 million asset-based financing facility it previously had with RBC, Asset Financing, with a more flexible and less expensive conventional revolving demand facility of up to $3 million from RBC, Commercial Financial Services, and a lease facility of up to $1 million from RBC Leasing Services.
These credit facilities, together with the Solidarity Fund QFL’s investment of $2 million in Groupe Bikini Village through an unsecured debenture announced last week, will allow the Corporation to better finance its ongoing expansion and renovation plan as well as its working capital needs, and will also give it the latitude to seize other opportunities that may arise.
“We value the confidence these important partners have demonstrated in Groupe Bikini Village’s strategic plan, and our ability to execute on it,” said Yves Simard, President and Chief Executive Officer. “We believe that both the additional investment by the Solidarity Fund QFL and these new credit facilities will allow Groupe Bikini Village to improve shareholder value, in spite of continuing pressure on retail market conditions.”
ABOUT GROUPE BIKINI VILLAGE INC.
Groupe Bikini Village inc., serving Canadians for almost a quarter-century, is a leading swimwear retailer with a network of new and renovated boutiques across Eastern Canada. In its bright and inviting stores with comfortable change rooms and knowledgeable staff, Groupe Bikini Village inc. helps its customers choose from among Canada’s widest selection of swimsuits, beach accessories, and cruisewear, in the most popular brands the industry has to offer and styles to suit every figure. Headquartered in Ste-Julie, Québec, Groupe Bikini Village inc. operates 59 stores and employs approximately 500 people; its securities trade on the Toronto Stock Exchange under the stock symbol GBV. For more information about Groupe Bikini Village inc., please visit our website at www.bikinivillage.com.
Forward-looking statements
This news release contains certain forward-looking statements concerning Groupe Bikini Village inc.’s future operations, economic performance, financial conditions and financing plans. These statements are based on certain assumptions and analyses made by management in light of their experience and their perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate under the circumstances. However, whether actual results and developments will conform to management’s expectations and predictions is subject to a number of risks, uncertainties and assumptions. Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected consequences or effects on the Company. Management undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable law.
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For more information, please contact:
Yves Simard
President and Chief Executive Officer
(450) 449-1310 ext 4797
ysimard@bikinivillage.com
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