Schuh gets Covid crisis financing deal
Genesco-owned UK footwear chain Schuh has boosted its funding after securing a £19 million financing facility from Lloyds Bank. The funding was accessed via the UK government's Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The company already had a facility with Lloyds but the new deal should lower its costs due to more advantageous interest rates and boost its long-term liquidity overall.
Access to ready cash is crucial for companies at present as businesses need to respond nimbly to market conditions and as suppliers and landlords seek guarantees that they will be paid.
The company operates more than 120 stores in Britain and Ireland, as well as its webstore. It has put a number of measures in place to boost its business but also to control costs as it forecasts a drop in physical store sales for its current financial year.
“Our business model has stood us in good stead to continue to meet customer demand throughout 2020,” Schuh managing director Colin Temple said. “However, we are not immune from the costs that have been felt throughout the high street.
“As the all-important golden quarter of trading continues to play out with different tier systems to manage throughout our store estate, it’s only right that we continue to take steps to ensure we’re in the best shape to overcome further disruption in 2021. Being able to draw upon the deep retail expertise of Lloyds Bank has naturally been a great asset for us and will continue to be so as we navigate the challenges presented by Covid-19.”
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