N Brown shares soar as retailer secures £50m coronavirus loan
Shares in N Brown soared more than 10 per cent this morning as the plus-size clothing retailer said it has secured £50m through the government’s Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The firm, which owns Simply Be and Jacamo, also said that trading had improved over the last six weeks since the “sudden and significant decline” reported in March.
Product sales were down 25 per cent during the period, with home and gift sales soaring 75 per cent. Clothing sales plunged 48 per cent due to the closure of physical stores during the coronavirus lockdown.
Financial services cash collections performed well and in line with last year. However, collections are expected to be lower over the next few months after the company offered customers in financial difficulty the option to defer payments for three months.
N Brown said it had secured a new £50m three-year loan facility under the CLBIL scheme. It has also amended terms and covenants of its £500m securitisation facility.
The company also has a revolving credit facility of £125m and a £25m overdraft facility.
Chief executive Steve Johnson said: “We are pleased to have secured support from both our banking partners and the Government’s loan scheme, which help to strengthen our financial position and gives us the flexibility and certainty to manage through this challenging period.
“In addition, the immediate and substantive actions we took at the very outset of this crisis have supported our working capital positively in this period.
“We have a unique portfolio of brands and products which appeal to a range of customer groups who can also benefit from our flexible payment options.
“ As we further develop and improve our offer, we remain confident in the long-term prospects for the business as we emerge from these challenging times.”