Skip to main content

Card Factory given one-month waiver over loan breach

// Card Factory given an extra month to negotiate with lenders to avoid breaching banking covenants on a £200m loan
// It previously warned it was set to breach the loan rules

Card Factory has been given an extra month to negotiate with lenders to avoid breaching banking covenants on a £200 million loan.

Bosses had warned the retailer was set to breach the loan rules by the end of the month following a plunge in sales during the Covid-19 pandemic.

However, Card Factory said this morning that its lenders would provide a waiver to the expected breach until February 28 while talks continue.

READ MORE: 

“We remain in constructive discussions with our banks, and have agreed a process to continue to explore a range of potential solutions, with scope for further extensions to the waivers as this process continues,” it said in a statement.

Earlier this month, the greeting cards retailer revealed that sales fell by 38.1 per cent after its stores were forced to shut completely for 37 per cent of potential trading days because of lockdowns.

Its online channels performed “strongly” over the 11 months to the end of 2020, with cardfactory.com reporting 137 per cent growth in like-for-like sales, while its trade sales grew by 63 per cent.

The retailer said at the time that it expected to report a pre-tax loss of about £10 million for the year, compared with a profit of more than £65 million in the previous year.

Card Factory’s announcement came less than 24 hours after rival card-seller Paperchase secured a rescue deal which will save around 1000 jobs and the most of stores after tumbling into administration.

However, it’s understood at least 27 of its 127 stores would shut their doors permanently and up to 250 jobs will be made redundant.

Administrators revealed that newly formed company Aspen Phoenix Newco, which is backed by Permira Debt Managers, is to take control of the high street retailer.

Meanwhile, online competitor Moonpig is gearing up for a stock market listing later this year in a move expected to value it at more than £1 billion after posting a 135 per cent sales jump in the six months to October as the pandemic drove more customers online.

with PA Wires

Click here to sign up to Retail Gazette‘s free daily email newsletter

The post Card Factory given one-month waiver over loan breach appeared first on Retail Gazette.



from Retail Gazette https://ift.tt/3j4fGAr
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp...
70 comments
Read more

Sagar Daryani, CEO and Co-founder – Wow! Momo & Saga: From a Kiosk to a Kingdom

Sagar Daryani’s entrepreneurial odyssey from humble beginnings to pioneering success has redefined the landscape of food startups in India. Co-founding Wow! Momo, he has spearheaded the growth of the largest indigenous QSR chain in the country, crafting a remarkable saga of triumph The Genesis: A Visionary Venture Takes Root In 2008, armed with a mere Rs. 30,000 and boundless ambition, Sagar Daryani and Binod Homagai embarked on their entrepreneurial journey while still pursuing their graduation in B.Com Hons from St. Xavier’s College, Kolkata, even before their college results were out. They knew the value for money and boot-strapped to plough back profits and grow their venture. Sagar spearheaded brand expansion, brand creation, and marketing and retail operations. Grew across the city with a strong consumer focus. The early days were hard but keeping track of the money flow was even harder. Believing in the concept of ‘1 rupee saved is 5 rupees earned’, and the lessons they lear...
1 comment
Read more

Homegrown ice cream chain HOCCO to open 250 stores, eyes Rs 400 crore by FY26

Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, and vision for the future… Bengaluru: HOCCO (House of Chonas Collaborative) , the Ahmedabad-based ice cream and quick-service restaurant (QSR) chain, boasts a rich legacy spanning over 70 years, with roots tracing back to pre-independence India. The Chona family has been deeply entrenched in the food industry since 1944, originally operating in undivided Pakistan. Following the Partition, Satish Chona , an engineer with British Overseas Airways Corporation, relocated from Karachi to India. After journeying through multiple cities, he ultimately settled in Ahmedabad, where he established his first QSR outlet in 1953. Three decades later, he expanded into the casual dining segment, launching a restaurant in Baroda while continuing the family’s ice cream manufacturing business. However, in 2017, the company sold its ice cream division to a South Korean firm, shifting its fo...
Post a Comment
Read more