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French Connection secures £15m in funding from Hilco Capital
24th Jul 2020 11:17
(Sharecast News) - Fashion retailer French Connection secured £15m in funding from turnaround specialist Hilco Capital on Friday as part of an effort to help the firm recover from the effects of the Covid-19 pandemic.
French Connection will use the working capital facility to cover cash requirements after suffering as a result of failing to qualify for Downing Street's coronavirus business interruption loan scheme.
The firm anticipates that its current net cash position will reduce over the coming months after covering HMRC, rental and supplier debts that had been deferred due to Covid-19.
French Connection also said it had seen sales volumes continue to grow week-on-week since the UK government allowed non-essential retailers to reopen, while eCommerce sales from its UK and US websites were up 24% over the last 15 weeks and wholesale orders were said to be better than expected during the lockdown period.
The London-listed group said: "Although the stores have reopened, with appropriate increased hygiene and social-distancing measures in place to keep colleagues and customers safe, it is too early to predict how quickly and to what extent store footfall and therefore sales will recover."
As of 1115 BST, French Connection shares had skyrocketed 150.75% to 12.60p.
French Connection will use the working capital facility to cover cash requirements after suffering as a result of failing to qualify for Downing Street's coronavirus business interruption loan scheme.
The firm anticipates that its current net cash position will reduce over the coming months after covering HMRC, rental and supplier debts that had been deferred due to Covid-19.
French Connection also said it had seen sales volumes continue to grow week-on-week since the UK government allowed non-essential retailers to reopen, while eCommerce sales from its UK and US websites were up 24% over the last 15 weeks and wholesale orders were said to be better than expected during the lockdown period.
The London-listed group said: "Although the stores have reopened, with appropriate increased hygiene and social-distancing measures in place to keep colleagues and customers safe, it is too early to predict how quickly and to what extent store footfall and therefore sales will recover."
As of 1115 BST, French Connection shares had skyrocketed 150.75% to 12.60p.