Ted Baker pins down long-term finance deal

By

Sandra Halliday

Published
May 25, 2021

Ted Baker has signed an extension to its revolving credit facility (RCF) with its existing lending syndicate. Pinning down long-term funding has been a key focus of many fashion retailers in recent months following the devastation caused by the pandemic.

The retailer’s new agreement extends its RCF maturity to November 2023 and amends the covenants. Combined with its strong net cash position of £66.7 million at the end of its latest financial year, it means the group “has the necessary cash and liquidity to continue the successful delivery of its transformation plan”.

The company said its existing lending syndicate continues to show ongoing support. Under the new agreement, RCF deals worth £133 million and due to mature during 2022 will be replaced by a new RCF of £90 million (reducing to £80m in January 2022) until maturity in November 2023.  

The announcement came just a day after the company said it was postponing its annual results report that had been due on Wednesday. It blamed pandemic-linked disruption to audit work for the delay that will now see its results released on June 10.

Those results are expected to include a pre-tax loss of around £79 million with revenue of around £340 million.