Sean Hughes Joins GB Merchant Partners

Press Release
Boston, MA – June 27, 2007 – GB Merchant Partners, the investment management affiliate of Gordon Brothers Group, today announced that Sean Hughes has joined the company as Senior Vice President.

Responsible for sourcing, analyzing, executing and managing debt investments, Mr. Hughes will focus marketing efforts on senior lenders, turnaround firms, and third party intermediaries such as private equity and investment banking firms.

“As our debt business continues to grow, we needed to add to our seasoned team,” said Matthew Kahn, Principal and Managing Director, GB Merchant Partners. “Sean is a veteran of commercial finance who will be responsible for building and managing our West Coast business.”

Mr. Hughes’ experience spans over two decades in commercial finance and encompasses the areas of marketing, underwriting, portfolio management, and asset recovery. Prior to joining GB Merchant Partners, Mr. Hughes has worked for LaSalle, Wells Fargo, FINOVA Capital, and Bank of America.

Mr. Hughes, who earned his Bachelor’s degree from the University of North Texas and holds an MBA from Pepperdine University, will work out of GB Merchant Partners’ Los Angeles office.

About GB Merchant Partners
GB Merchant Partners, www.gbmerchantpartners.com, a Gordon Brothers Group company, is the investment management affiliate for Gordon Brothers Group managing approximately $600 million of capital. GB Merchant Partners provides creative debt financing solutions to private and public middle-market companies in the retail, consumer products, distribution, wholesale, industrial and real estate sectors. Debt financings are typically structured as secured or cash flow senior loans, “Tranche B” loans or mezzanine loans for working capital to fund long-term growth, execute an acquisition or facilitate a turnaround. GB Merchant Partners also makes investments in secondary debt including distressed and leveraged loans and bonds, as well as vendor debt and other securities. Recent deals completed include a $19.5M bridge financing for Crystal Cream & Butter Company, a $24.5M financing of Quaker Fabric Corporation, and a Participation in the Sponsor purchase of G.I. Joe’s Inc. GB Merchant Partners also provides equity financing to retail and consumer product companies to fund growth or restructurings in partnership with management. GB Merchant Partners currently owns and manages over 1,600 stores through various portfolio companies including Things Remembered, Andrew Marc, Spencer Gifts, Laura Secord, and Grafton-Fraser.

About Gordon Brothers Group
Founded in 1903, Gordon Brothers Group, www.gordonbrothers.com, is an advisory, restructuring and investment firm specializing in the retail, consumer products, real estate and industrial sectors. The firm provides a wide variety of services to companies at times of growth and restructuring. Gordon Brothers Group capabilities include asset valuations, dispositions and appraisals, real estate consulting and acquisitions, retail store operations, lending, equity investments, restructuring and advisory services. The firm has unparalleled expertise in assisting healthy and distressed companies in maximizing the value of under-performing assets and expanding operations through new products and distribution channels. Gordon Brothers Group resources include over 250 professionals and 200 field experts, including former CEOs, CFOs, merchants and executives in offices worldwide. During the past three years, Gordon Brothers Group has appraised over $100 billion of assets, managed more than 7,000 stores, sold more than $10 billion of inventory and restructured or sold over 120 million square feet of retail space. In addition, Gordon Brothers Group has a 1903 Equity Fund that currently owns and manages over 1,600 stores through various portfolio companies including Things Remembered, Andrew Marc, Spencer Gifts, Laura Secord, and Grafton-Fraser.