GB Merchant Partners Provides $12.5 Million to Dan River Properties.

Press Release
BOSTON, MA – December 5, 2007 – Dan River Properties LLC, a provider of value-added home fashion products, now has the necessary capital to fund its revitalization effort.

As part of a refinancing arrangement, the company, which emerged from bankruptcy several years ago, received a $12.5 million senior fixed asset term loan from GB Merchant Partners, the investment management affiliate of Gordon Brothers Group. The loan will be used to refinance real estate and machinery & equipment in North Carolina and Virginia.

Originally founded in 1882 as The Riverside Cotton Mill, Danville, VA-based Dan River Properties has experienced a fundamental shift, particularly in the last decade, as the U.S. home fashions textile business faces stiffer competition from higher quality, lower cost foreign products.

“The massive consolidation of the U.S. home fashions textile business is making it more difficult for domestic textile companies to secure financing,” points out Lawrence Klaff, Managing Director of GB Merchant Partners. “However, because of our expertise within this sector, we were able to find value in the company and thus structured the appropriate financing needed to help deliver against its revitalization effort.”

Having ceased its manufacturing operations in 2006, Dan River Properties focuses solely on sourcing all products from third-party manufacturers or affiliated manufacturing companies. Major customers include Wal-Mart, Kmart, and J.C. Penny while licensees include Seventeen, Stuff by Hilary Duff, Caribbean Joe and The Wiggles, to name a few.

About GB Merchant Partners
GB Merchant Partners (www.gbmperchantpartners.com) is the investment management affiliate of Gordon Brothers Group, with over $500 million of capital under management. The firm focuses on private equity, structured loan and secondary debt investments. Debt financings are typically structured as junior secured loans, "Tranche B" loans or enterprise value loans which range from $10 to $50 million and are made to middle-market companies in the distribution, wholesale, industrial, retail, consumer products and real estate sectors.