Card Factory has reportedly drafted in restructuring experts to help secure news funds to support the group through the pandemic.
According to the Sunday Times, consultants from Deloitte initially contacted specialist lenders on behalf of the group in efforts to borrow £100m. Half of the funding would reportedly be used to repay Card Factory’s existing debts.
However, discussions ended without agreement, according to reports. In light of this, Card Factory is now said to have entered talks with its existing lenders, HSBC, NatWest, Santander and Lloyds, over new financing arrangements.
A source told the Sunday Times that discussions with the banks were “positive”.
News of the latest plan to secure new funding comes one week after Card Factory issued a liquidity update which confirmed the groups intentions to refinance as banks provided further waivers in respect of anticipated covenant breaches until 31 March 2021.
The group claimed that the banks had taken into account the company’s cash flow projections and that it had continued to engage in “constructive discussions” with the retailer.
Additionally, the company said it has welcomed the roadmaps to reopening non-essential retail by the UK and devolved governments and “looks forward” to welcoming colleagues and customers back into the stores as soon as possible, once restrictions are lifted.