Dive Brief:
- DTC mattress brand Casper has struck a deal to refinance a loan through an $80 million credit facility from Second Avenue Capital Partners and Tiger Finance, according to a Thursday press release.
- The new credit facility will be used to retire an existing one, as well as to support the capital needs of the business.
- "We believe the choice of lenders is a vital component to the overall strategy, and SACP and Tiger share our vision for the company,” Eric Sobotka, managing partner at Durational Capital Management — Casper’s parent company — said in a statement. “Their extensive consumer expertise allowed them to provide a thoughtful financing solution that supports Casper and drives long-term value."
Dive Insight:
Casper has had a busy year. At the start of 2022, the DTC mattress brand closed on its deal to be acquired by private equity firm Durational Capital Management. That came around two years after Casper entered the public markets.
At the time of the acquisition, co-founder Philip Krim stepped down from the CEO post and was replaced by then-Chief Commercial Officer Emilie Arel. Under new leadership, the brand is focusing its strategy around one thing: becoming profitable.
Casper, like many other DTC brands, struggled under mounting losses despite increased sales, often due to the customer acquisition costs associated with e-commerce.
“Part of the issue at Casper over the last few years had been the shiny penny syndrome. ‘Oh, that’s very interesting. Let’s go do that.’ That is very confusing for people,” Arel said during a panel at eTail Boston earlier this year. Rather than trying to become the “Nike of Sleep,” the company is now focusing on its flagship product — the mattress — and figuring out how to be the best retailer for that category.
In an effort to drive traffic to its New York City NoHo location, Casper earlier this week announced a partnership with Netflix to stream its “Slumberland” film. The DTC brand will host several screenings at the store — complete with snacks, beverages and surprise giveaways — on Saturday and Sunday.
