Client Overview
Our client is a prominent player in the hardware retail industry, providing essential home improvement products and services across the southeastern United States. Headquartered in the South, the business operates a robust network of over 20 franchise locations spanning the Southeast. With annual revenues estimated between $10 million and $100 million, the enterprise employs a dedicated workforce of 100 to 500 team members.

While the company’s operational roots track all the way back to 1918, a pivotal modernization occurred in 2019 when it established itself as a consolidated limited liability company with eight foundational stores. Since then, the business has scaled rapidly.

The Path to Wintrust
Great partnerships take time to build. In 2023, representatives from the Wintrust Franchise Finance team connected with the client’s leadership team at industry conventions. The Wintrust Franchise Finance team maintains a highly active presence at industry conferences, conventions, and trade shows—attending an average of 17 industry events every year, including two annual Ace conferences. This consistent industry immersion enabled Wintrust to meet with the client frequently over a two-year period, building trust and discussing tailored financial solutions long before executing a transaction.

The Challenge
As the client expanded from its initial footprint toward over 20 locations, its operational complexity and financial demands multiplied. The retailer faced a distinct set of hurdles that threatened to stall its upward trajectory:

• Lending Capacity Limitations: The client’s existing lender hit its maximum hold size. The bank was legally or systematically incapable of extending the higher credit volumes required for the retailer’s next phase of development
• Operational Bottlenecks: The incumbent financial institution failed to deliver the responsiveness and speed necessary to keep pace with a fast-moving retail market. Delays in communication and decision-making hindered the client’s agility
• Need for Sophisticated Advisory: Rapid scaling introduced new operational layers. The business outgrew simple transactional banking and required strategic financial guidance to navigate complex corporate growth demands

Ultimately, the retailer needed more than just a source of capital; they required a sophisticated, highly responsive financing partner capable of acting as a trusted advisor to unlock their next stage of regional expansion.

The Results and Impact
By transitioning funding over to Wintrust, the retailer unlocked the agility and purchasing power necessary to execute their aggressive growth strategy. The structured financing package delivered immediate, tangible impacts across their operations:

• Refinanced Existing Debt: Restructuring their legacy debt optimized cash flow and freed the business from the restrictive lending ceilings of their previous financial partner
• Strategic Regional Expansion: Capital access directly funded the launch of two brand new store locations, further cementing their retail footprint in the Southeast
• Accelerated Acquisitions: The newfound capital structure gave leadership the liquidity needed to pursue strategic acquisitions and new store development opportunities aggressively
• Seasonal Working Capital: Retail hardware operations inherently face seasonal fluctuations. Wintrust provided crucial additional funds during the winter slow season, ensuring smooth operations when access to capital was critical

The Wintrust Difference
Rather than treating the relationship as a quick transactional win, Wintrust invested two years into the relationship before a formal deal was even structured. By meeting frequently at industry conventions and showing up consistently, Wintrust delivered a differentiated customer experience. The team took the time to truly listen, deeply understand the client’s long term business goals, and map out a clear path to achieve those milestones. Where the previous lender saw a capacity ceiling, Wintrust provided an open-ended strategic partnership and expanded access to vital capital. For Wintrust, this transaction represents disciplined and strategic growth, bringing a healthy balance sheet, exceptional community visibility, and market-validated leadership to the portfolio. Partnering with such a strong, reliable organization underscores Wintrust’s commitment to backing high performing, stable franchise operations.

Deal Team
Bankers/Officers: Ed Semik and Sean Willison
Executive Management: Chris Baker, Sandra McCraren
Underwriting: Juan Spader
Credit: Evan Bossard, TJ Benkoske
Treasury Management: Edwina Vass

Looking Ahead
The closing of this deal is just the baseline for an expanding relationship. Wintrust is already looking ahead, exploring additional financing opportunities with the client’s parent company to further optimize its corporate capital structure.

Ready to scale your franchise footprint?  Work with our dedicated team, visit Wintrust.com/ace today!

Wintrust Franchise Finance is a division of Lake Forest Bank & Trust Company, N.A., a Wintrust Community Bank.