Wakefield-based Card Factory in 'constructive discussions' with banks over future

THE Card Factory has revealed that its banking syndicate has provided waivers in respect of anticipated covenant breaches until the end of February.
The company has today issued an update regarding its liquidity.The company has today issued an update regarding its liquidity.
The company has today issued an update regarding its liquidity.

The company has today issued an update regarding its liquidity.

In a statement, the Card Factory, said: "We reported on 14 January 2021 that, as a result of recent and current lockdowns, we anticipated that our banking covenants would be breached at the end of January. We also noted that we were in constructive discussions with our banking syndicate.

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"We are pleased to announce that our banking syndicate has provided waivers in respect of anticipated covenant breaches through until 28 February 2021 taking account of the company's cash flow projections, subject to certain conditions. We remain in constructive discussions with our banks, and have agreed a process to continue to explore a range of potential solutions, with scope for further extensions to the waivers as this process continues."

"A further update will be provided in due course."

Earlier this month, Card Factory, said its sales were significantly hit by extended periods of mandatory store closures during lockdown periods.

The Wakefield-based firm said this resulted in over a third of trading days being lost during the 11 months to December 31.

Sales over the 11 month period fell from £425m in 2019 to £281m in 2020.

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