The Card Factory has been given more time to continue ‘constructive discussions’ with its lenders, as it explores plans to refinance.
The company, which sells greetings cards, gift dressings and party products, has struggled due to recent and current lockdowns, with long periods of store closures. Although it did make some gains online – sales at cardfactory.co.uk were up 137 per cent in 2020, it wasn’t enough to offset the 38.1 per cent decline in store sales. Leading The Card Factory to warn investors (on 14 January) that it expected to post a loss of around £10 million (before tax) in its full-year results.
In its latest liquidity update – on 26 February, the high street retailer, said its banking syndicate remained supportive and had “provided further waivers in respect of anticipated covenant breaches through until 31 March 2021, taking account of the Company’s cash flow projections, subject to certain conditions.”
The company added: “We are engaged on a plan to refinance the Company, and will provide a further update in due course.
“Coupled with the expected reopening of the vast majority of the store estate during April, the Board is confident the business is well placed to deliver for the benefit of all stakeholders.”
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