Card Factory’s big refinancing deal
Card Factory records a strong trade performance
BUSINESS: The Card Factory revealed it had completed a £225m refinancing deal and recorded a strong trading performance in its stores as lockdown restrictions are eased.
However, shares in the Wakefield-based company fell as investors analysed the new funding move, which includes a £100 million credit facility.
THE CARD Factory yesterday revealed it had completed a £225m refinancing deal and recorded a strong trading performance in its stores as lockdown restrictions are gradually eased.
However, shares in the Wakefield-based company fell yesterday as investors analysed the new funding move, which includes a £100m credit facility, £75m loan and £50m Coronavirus Large Business Interruption Loan.
The high street firm said it will use the cash to strengthen its online proposition for customers and improve its capacity to deal with sales demand.
Darcy Willson-Rymer, chief executive of the business, said the new funds will afford the group “the headroom required to focus on realising the growth strategy”.
In the stock market update, the group said its initial store trading “exceeded both our expectations and the sales performance realised after reopening following the first and second lockdowns”.
It said that sales for the five weeks from April 12 were “marginally” down against the same period in 2019, before the pandemic struck.
Lower retail footfall has been largely offset by increased spending per customer, Card Factory said.
Mr Willson-Rymer said: “We welcome our colleagues and customers back into our stores, providing the quality ranges at competitive prices which our customers have missed whilst stores were closed.
“As national restrictions are eased, we continue to prioritise providing a safe working and shopping environment in all our stores.
“The strong trading performance in our stores over the last few weeks reflects the extensive preparations to maximise meeting our customers’ needs completed by the wider Card Factory team.”
The statement added: “To date, increased spend per transaction has primarily offset the reduced retail footfall: customers are shopping less frequently but buying more.
“We continue to monitor changes to customer behavior to meet their needs.
“Our Everyday Card and party ranges have performed strongly, with a clear early trend of customers shopping more evenly during the week.
“Sales from the online channels have fallen, as expected, as customers have also been able to shop in our stores, albeit online sales are still exceeding pre-pandemic levels.”