GB Merchant Partners Invests in Clair de Lune

Press Release
BOSTON, MA – January 2, 2008 – GB Merchant Partners, the investment management affiliate of Gordon Brothers Group, announced that it has invested in Clair de Lune, a leading retailer and wholesaler of candles, aromatic products, gifts and home accents in Canada. As part of the transaction, Clair de Lune’s founders, Albert Levy, Chief Executive Officer, and Jimmy Levy, President, retained a significant ownership stake in the Company.

“In order to effectively build on our success, we needed more than just a financial partner. GB Merchant Partners understands the constantly changing nature of retailing and has in-depth experience investing in Canada. We believe they are an ideal partner for our team as we embark on our next phase of growth, which will include continued expansion of our store base as well as further development of our wholesale channel,” said Albert Levy. “GB Merchant Partners’ unique mix of skills and resources will help us build on our success.”

Headquartered in Montreal, Canada, Clair de Lune operates over 75 stores throughout Quebec, Ontario, New Brunswick, and Nova Scotia, and maintains wholesale distribution relationships in Western Canada, the United Kingdom, Europe and the Middle East. Clair De Lune was founded in 1999. In 2005-2006, the Company began expansion into the Ontario market. Over the past five years, Clair De Lune has tripled its store base and built-out its operations and infrastructure to support future growth.

“Clair de Lune has enormous brand equity and a strong management team that has orchestrated impressive store-based growth throughout Eastern Canada by offering high quality, value-added products at great prices,” commented James Dworkin, Managing Director of GB Merchant Partners. “We look forward to working with Albert, Jimmy and the entire CDL management team to build on their success and facilitate future growth.”

About GB Merchant Partners
GB Merchant Partners, LLC (“GBMP”) 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. Private equity investments are made through GBMP’s 1903 Equity Fund, which takes majority and minority equity positions in middle-market retail and consumer products companies. GB Merchant Partners leverages Gordon Brothers Group’s consumer products and retail expertise, and prefers to partner with management teams to complete a buyout, fund growth or facilitate a restructuring. Current private equity portfolio companies include: Como Fred David, Clair de Lune, Deb Shops, Grafton Fraser, Things Remembered, Toys R Us, Dollarama, Laura Secord and Amscan. To learn more about GBMP please visit www.gbmerchantpartners.com.

About Clair de Lune
Headquartered in Montreal, Canada, Clair de Lune is a leading retailer and wholesaler of candles, aromatic products, gifts and home accents in Canada. The Company operates over 75 stores throughout Quebec, Ontario, New Brunswick, and Nova Scotia.