Shop Direct secures new funding
Shop Direct’s parent company Shop Direct Holdings Limited has secured £150 million worth of new funding.
The Very and Littlewoods owner announced back in October that intended to raise up to that amount to address its increased PPI claims liability.
In a statement, Shop Direct said £75 million will be invested in the business by the end of November while the remaining £75 million will be available to the company for subsequent drawing in accordance with its liquidity requirements.
Although Shop Direct Holdings Limited has now secured the full amount of funding required by Shop Direct, the company is continuing to work with financial advisers to look at alternative financing options for the £75 million that will initially remain undrawn.
Shop Direct has also received an offer on agreed terms that would enable up to £100 million of new notes to be issued under its existing receivables securitisation programme.
The company said: “It is the group’s intention to reach a conclusion on its financing structure as quickly as possible and we will provide a further update as soon as this is decided.”
