The Hackett's Hardware chain should have its major line of credit paid off within 13 weeks, according to a press release from the company.
"We are pleased to announce that Hackett's is on scheduled to completely repay its $5 million inventory based line of credit without any additional infusion of capital," said Thomas Scozzafava, Hackett's CEO.
After the repayment of the senior line of credit, Hackett's will have about $1 million of other bank and bank-related debt and $950,000 in investor notes.
When the major credit line is paid off, the company will be better positioned to secure another senior lender, which should allow the company to broaden and update its mix of inventory, Scozzafava said.
This week a federal judge dismissed an involuntary Chapter 7 bankruptcy petition that had been filed by a half dozen major creditors of the chain.
The dismissal came on the request of the creditors themselves, after reaching agreement with Hackett's on repayment.
The Ogdensburg-based chain recently announced closing of stores in Watertown and Pulaski. Another store, in Sackets Harbor, is set to open this spring.
