Bakers Footwear Group, Inc. announced that effective from Thursday 26th it obtained a $5 million debt and equity investment from Steven Madden, Ltd.

Steve Madden Autumn Collection 2010

Bakers received net proceeds of approximately $4.6 million, net of transaction expenses, and will use the proceeds for working capital purposes.

The $5 million note bears interest at 11% with principal payments due during 2017 through 2020 and is subordinate to Bakers` other outstanding debt.

Steve Madden will also be issued 1,844,860 shares of common stock as additional consideration for the loan, providing it with a 19.99% equity interest in Bakers.

"We are pleased to expand our 20 year partnership with Steve Madden" said Peter Edison, Chief Executive Officer of Bakers, "it represents a strong vote of confidence in our business”.



By Rosie Hart