Trans World Entertainment Corporation Announces New Financing, Board Changes and Company Refocus

• etailz co-founder to join Board
• Added liquidity to refocus on etailz growth initiatives

ALBANY, N.Y., March 31, 2020 (GLOBE NEWSWIRE) -- Trans World Entertainment (Nasdaq – TWMC, “TWEC” or the “Company”) announced today it has secured additional financing for its wholly owned subsidiary etailz, Inc. (“etailz”) from investors led by Alimco Financial Corporation (“Alimco”). Together with the previously announced credit facility, etailz now has over $30 million in committed new financing.

In connection with the financing, Tom Simpson and Jonathan Marcus will join a reconstituted board of directors. Mr. Simpson was co-founder and Executive Chairman of etailz up until TWEC’s acquisition of etailz in 2016, and currently serves as Managing Member of the Kick-Start funds. Mr. Marcus is the CEO of Alimco and has over 30 years of experience as an investor, including numerous board roles.

The Company will now focus exclusively on the growth and success of etailz.  The financing will help etailz achieve its growth goals, which includes further developing its software and services offerings, supporting inventory expansion, and expanding into new marketplaces and geographies.

The Company also announced the departure of Michael Feurer, the Company’s Chief Executive Officer, effective immediately.  Mike had been Chief Executive Officer and a director of the Company since 2014.

“Mike’s leadership was instrumental in the brand transformation and recent sale of our FYE business and the financing of etailz.  In fact, it was Mike’s foresight regarding digital marketplace retailing that prompted the Company to reinvent itself with the purchase of etailz several years ago.  The Board thanks Mike for his contributions to the Company and wish him the best in the future.  This marks the end of the FYE chapter of TWEC and a new beginning for the Company,” said Michael Solow, retiring Chairman of TWEC’s board.  Mr. Solow, along with Michael Feurer, Jeff Hastings, Rob Marks and Michael Nahl, retired from TWEC’s board effective with this financing.

Mr. Simpson co-founded etailz in 2008 and led the company as its Executive Chairman for 8 years and to over $115 million in annualized revenues until its acquisition by TWEC in 2016. “I am honored to rejoin the company I co-founded and to work closely with the entrepreneurial etailz team to achieve its objectives,” said Mr. Simpson.