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Card Factory has issued a liquidity update which confirmed the groups intentions to “refinance” as the banks have provided further waivers in respect of “anticipated covenant breaches” through 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.
The news follows the group’s recently announced end of year trading update, which saw its sales for the 11 months ended 31 December 2020 drop by 38.1% year-on-year.
As a result of the “drastically reduced” footfall across all of its store locations, the company had previously warned that it will see a loss before tax of roughly £10m in its full-year results.
Paul Moody, executive chairman at Card Factory, said at the time: “Throughout 2020 we unwaveringly did all that was necessary to protect our colleagues and customers, making our stores one of the most Covid-secure shopping experiences available.
“The financial investment has been significant, but critical to enabling us to meet our social responsibility.”
