EXHIBIT 99.2
PRESS RELEASE
ASHFORD.COM CLOSES $25 MILLION CREDIT LINE
HOUSTON, Sept. 25 /PRNewswire/ -- Ashford.com (Nasdaq: ASFD - NEWS), the leading
Internet retailer of luxury and premium products, today announced the closing of
a three-year, $25 million revolving credit facility from Congress Financial
Corporation, a unit of First National Bank. This debt financing commitment,
originally announced July 27, 2000, increases the company's working capital
without dilution to its shareholders, and is secured in part by Ashford.com's
inventory of luxury goods including watches, jewelry and other products.
"We believe we are the first Internet retailer to secure senior credit financing
based on a business model of selling high-end, high-margin merchandise, with
historically lower depreciation of inventory value and faster inventory turns,"
said Kenny Kurtzman, CEO of Ashford.com. "This loan provides us with an even
greater cushion in working capital to help us manage through seasonal demand."
About Ashford.com
Ashford.com is the leading Internet retailer of luxury and premium products. The
company's e-commerce site, located at HTTP://WWW.ASHFORD.COM/, offers a vast
selection of diamonds and more than 14,000 styles of new and vintage watches,
jewelry, fragrances, leather accessories, ties, scarves, sunglasses, writing
instruments and corporate gifts from more than 350 leading brands. Dedicated to
creating a comfortable and safe shopping environment, Ashford.com offers
customers the Ashford.com Protection Plus(SM) policy, which provides outstanding
product warranties, customer privacy, and site security. Ashford.com is
headquartered in Houston, Texas.
Forward Looking Statements
This release contains forward-looking statements within the meaning of Section
21E of the Securities and Exchange Act of 1934, including statements regarding
the Company's expectations, beliefs, hopes, intentions or strategies regarding
the future. Forward-looking statements include, but are not limited to,
statements regarding our ability to fund operations without diluting shareholder
equity and our ability to become the leader in the online luxury category. All
forward-looking statements are based upon information available to the Company
as of the date of the statement, and the Company assumes no obligation to update
any such forward-looking statement. Actual results could differ materially from
the Company's current expectations. The potential risks and uncertainties that
could cause actual results to differ materially include, but are not limited to,
the ability of Congress Financial and Ashford.com to implement the loan
agreement successfully; the Company's ability to plan for customer demand and
adjust inventory levels accordingly; customer interest in the purchase of
various categories of luxury goods on the Internet; the failure of systems
associated with order fulfillment; continued
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competitive factors and pricing pressures; and market responses to pricing
actions and promotional programs. Further information on the factors and risks
that could affect the Company's financial results are included in its filings
with the Securities and Exchange Commission, including in the Company's most
recent Form 10-Q.
Ashford, Ashford.com and Ashford Collection are trademarks of Ashford.com. All
other marks are the property of their respective owners.
SOURCE: ASHFORD.COM
