GoldGilts’ $1,2 billion cash injection into its retail business means it is in “good shape,” its chief executive said on Tuesday, adding that the company’s new $9 billion facility will make it one of the top-performing in the industry.
“We’ve done it.
We’ve achieved it,” Gilt’s chairman and chief executive, James Green, told reporters.
The company is expected to pay out a $1 billion cash infusion next week, and Mr. Green said the company was still evaluating the cost of the project and could not give a precise figure for the project’s total cost.
The facility, which will have 10 floors of retail space and be used to expand its customer base, is expected create an estimated 10,000 jobs, he said.
Mr. Gilt is expected in March to announce that it will break ground on a second $1-billion store, in the form of an expansion of the first, in downtown Los Angeles.
The $1 million cash infusion will allow the company to invest further in expanding its retail footprint, said David J. O’Brien, chief investment officer at J.P. Morgan.
“It’s not just about the store,” he said, adding the investment will allow GoldGils to stay on top of emerging trends.
The announcement comes on the heels of a $5 billion cash payment on a $3 billion loan to the company in September.
The new cash infusion comes after a period in which the company struggled to get enough money from the government to repay a loan it took out to purchase a $6 billion building in the city of Gresham.
The government loan was meant to help finance the $1 trillion construction of a new public plaza at the site.
The plaza is scheduled to open in 2019, but the state of California and California’s housing authority are still waiting to make a final decision on the project.
On Tuesday, Mr. O: said the project had been “in a state of limbo.”
GoldGild’s stock fell more than 8% to $11.50 on Tuesday as it reported quarterly results, as the company said it would pay out $4.2 billion to customers in the first quarter and another $1 for each month after that.
GoldGilts shares fell nearly 9% in after-hours trading on Tuesday.
A spokesman for GoldGiles said the new cash payment is part of the company:s $3.2-billion dividend payment that the bank plans to pay to its shareholders.
Mr O:s remarks followed a report from Bloomberg that said the state and the city were seeking more than $10 billion in loans to complete the plaza, which is scheduled for completion by 2019.
Goldgilt is a publicly traded company that makes jewelry for both men and women and is one of several retailers with the name GoldGilded in its name.
Its retail business, which includes stores and jewelry boutiques, has more than 10 million customers in 24 countries.
Mr Green said that the new facility will help it stay on its game.
“I don’t think anyone’s ever done this before.
We’re going to make it look easy,” he told Bloomberg.
Mr Gilt has been working on a new plaza in downtown Gresingham, Massachusetts, for nearly two years, with an estimated completion date of 2021.
The store will be in a new, mixed-use development called the Greshenge Village, and the company expects to have the new plaza open by 2019 or 2020.