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Card Factory issues liquidity update

Greeting cards retailer Card Factory has issued an update on its liquidity following its statement earlier this month regarding a potential breaching of its banking covenants… View Article

GENERAL MERCHANDISE

Card Factory issues liquidity update

Greeting cards retailer Card Factory has issued an update on its liquidity following its statement earlier this month regarding a potential breaching of its banking covenants at the end of January. 

At the time, Card Factory said its short term cash requirement would be covered within its existing £200 million bank facility but that it expected its current covenants to be breached at the end of the month, although it was continuing to have constructive discussions with its banking syndicat.

In a statement today, the retailer said its banking syndicate has provided waivers in respect of anticipated covenant breaches through to 28 February after taking account of its cash flow projections.  It added: “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.”

On 14 January, Card Factory warned that it could report a pre-tax loss of around £10 million in its full year results due to extended periods of store closures during the Covid-19 crisis.

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