But there's a catch. In return for the bridge loan, Whitehall has agreed to sell 2.8 million shares or about 20% of the company at an exercise price of 75 cents per share. The company also agreed to issue $50 million in notes that the investors can convert into common stock at the same per-share price. After converting the notes, receiving interest in shares and exercising the warrants, Whitehall says Prentice would own about 87% of its common stock.

The issuance of the convertible notes is subject to a number of conditions including shareholder approval of a 1-for-2 reverse stock split. Additionally, Prentice Capital plans to elect enough of its own to constitute a majority on the company's board of directors.

Whitehall says it has also has reached agreement with its banks, LaSalle, Back Bay and Bank of America, to make payments over time with a maximum borrowing of $15 million to $140 million. Further, the lenders have agreed to extend financing until 2008.