Investing.com - HF Foods has announced that it has amended its ongoing credit agreement with JPMorgan Chase (NYSE:JPM) and Comerica (NYSE:CMA) Bank, saying the move will help support the U.S. Asian food distributor's growth ambitions as it grapples with sluggish consumer spending at restaurants.

In a statement on Tuesday seen by Investing.com, the company added that the updated agreement also includes a loan from Wells Fargo (NYSE:WFC) which will increase its total revolving commitments by $25 million to $125 million.

"This additional revolver capacity will help support our growth strategy and the continued execution of our strategic transformation plan by providing us with further financial flexibility," said Chief Executive Felix Lin on Tuesday. 

The move comes after Lin was formally appointed last year to helm the Las Vegas-based group, which markets and distributes fresh produce, frozen and dry food, and non-food products to Asian restaurants and other clients throughout the U.S.

Lin, who first replaced former boss Peter Zhang on an interim basis in October, previously served as the firm's President and Chief Operating Officer. HF Foods previously noted that the transition was "not due to any disagreement" with Zhang regarding the company's financial reporting, policies or practices. Zhang remains on HF Foods' board.

Speaking in a call with analysts in December following HF Foods' third quarter results, Lin flagged that the business is undergoing an overhaul of its operations as it faces headwinds from cautious spending habits by price-conscious consumers.

The trend weighed on foot traffic at restaurants, Lin noted, adding that this led to some "weaker ordering patterns" from its customers as well as "increased competition" among distributors. The backdrop for the firm remains "choppy," although HF Foods still logged net revenue growth of 6% versus the year-ago period to $298.4 million, Lin said.

HF Foods posted a net loss of $3.8 million in its fiscal third quarter ended on September 30, compared to a profit of $2 million a year earlier. Adjusted core earnings also decreased by 17.7% to $8.3 million.

Shares in HF Foods have slumped by almost 40% over the past one-year period.

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