ModCloth and what happens when debt is used as growth equity

ModCloth, an online retailer for vintage women’s apparel, was acquired by Jet.com. There are good lessons to be learned on growth financing:

[D]ebt can also work against you. If you can’t execute well post raising debt and get to another equity round or some other transaction (an attractive exit being the other obvious option), then you can have your debt called from under you and lose the control over the timing and terms of your exit.

Using Debt Like Growth Equity