Company: CRWS
Filing Date: 2025-01-03
Form Type: 8-K
Source: 0001437749-25-000209
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Company: CROWN CRAFTS INC
Filing Date: 2025-01-03
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement.  

On January 2, 2025, Crown Crafts, Inc. (the “ Company”) and its subsidiaries entered into a letter agreement (the “ Letter Agreement”) with The CIT Group/Commercial Services, Inc. (“ CIT”) with respect to the Financing Agreement, dated July 11, 2006, between the Company, its subsidiaries and CIT, as supplemented, amended and restated from time to time (the “ Financing Agreement”). Pursuant to the Letter Agreement, CIT waives the Company’s non-compliance with the fixed charge coverage ratio required under the Financing Agreement with respect to the Company’s fiscal quarters ended September 29, 2024 and December 29, 2024.

In addition, the Letter Agreement modifies the Financing Agreement by changing the Excess Availability (as defined in the Financing Agreement) required to be maintained by the Company with respect to its revolving line of credit under the Financing Agreement to $7,000,000.00 (from 50% of the outstanding balance of the Company’s term loan under the Financing Agreement). Upon notice to the Company, CIT may reverse such modification.

SIGNATURES