A former lender to RadioShack Corp. and a one-time chief executive officer of Frederick’s of Hollywood are teaming up to provide a new source of funding to retailers, aiming to capitalize on upheaval at shopping malls, Bloomberg News reported yesterday. Andy Moser and Thomas J. Lynch, two industry veterans, are starting a Boston-based firm called Scargo Hill Capital that will make asset-based loans to consumer companies. The founders expect to work with emerging businesses that may not be able to get a loan from a traditional bank, in addition to providing a lifeline to struggling chains. With consumer spending habits changing so rapidly, “there’s plenty of turmoil in the market for us to focus on,” Moser said in an interview. While asset-based lending has tended to focus on distressed companies, emerging retailers often have similar profiles, Moser said. They lack a history of solid financial performance but need capital to expand their businesses. Scargo Hill also will target loans to smaller suppliers and merchants that have been getting squeezed by consolidation, he said.
