FatFace in financing talks, continues trading online
FatFace, the privately-owned fashion retailer, has said it will continue to sell online as its stores remain closed and also that it’s in talks on new financing.
The company is currently in talks with its private equity owner and banks to raise new cash, the Telegraph reported. But the talks don't appear to be connected to any worrying cash crunch, rather it's about renegotiating lending facilities that will be expiring relatively soon.
The talks come as the company does everything it can to encourage online sales. Extra inducements for customers include a six-month returns policy as well as free and contactless delivery. It’s also running a 20%-off promotion online.
A spokesperson said: “We are actively engaged in discussions with our owner Bridgepoint and lending banks about our financing options going forward as our current facilities expire later this year. We cannot comment further on the refinancing as conversations are still ongoing. We will update the market in due course.”
The company has also reached agreement with Companies House to file its annual accounts later than it should have done. They were initially due in late February. The newspaper said that those accounts (covering the year up to the end of May 2019) will show sales of just under £242 million and operating profits of £27 million. The sales figure would be higher than the £238 million recorded in the previous year (which itself was up more than 7%), but the profits figure would be lower than the £30 million of the prior year. Revenue was boosted by a 9% sales rise online and a 37% rise internationally.
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