DFS looking at £100m cash cushion

BILLION- pound furniture giant DFS is understood to be looking at options to raise as much as £100 million extra funding, City sources revealed.

The retailer is said to have considered raising cash in the next fortnight through an equity placing, extending its bank facilities or accessing the Government loan scheme which offers large firms up to £50 million, according to the sources.

If t he go- ahead was given to such a plan, it would make DFS t he l at est r et ai l er to t ap i nvestors for funding following cash calls from WH Smith, online clothing firm ASOS and fashion business Joules. DFS declined to comment on the talk. Most retailers have been forced to close, furlough staff and are now battling with landlords over rent payments on stores which are not expected to trade for many more weeks.

The Government last week extended its wage subsidy scheme until the end of June following the decision to keep Britain in full lockdown for at l east a further three weeks.

Last month DFS, which specialises in sofas but also sells beds, said it would need access to additional funds ‘in the event of a prolonged lockdown’.

The company said senior directors would take a pay cut as part of measures to help mitigate the economic impact of the pandemic.