// Fat Face gains support of lenders to refinance the business
// The retailer seeks to survive through the Covid-19 crisis
Fat Face has reportedly gathered support from lenders to refinance its business in an effort to stabilise it for the ongoing coronavirus pandemic.
The lifestyle retailer’s lenders, which comprise of a consortium of banks and debt funds thought to include Lloyds Banking Group and Goldman Sachs, will take over the business from its majority shareholder, private equity firm Bridgepoint.
Fat Face will gain access to a £15 million cash injection and the overall debt of the group will be “significantly” reduced.
Fat Face’s current banking facilities were due to mature later this year and the new deal will complete later this month, Drapers reported.
Fat Face chief executive Liz Evans said the retailer had been in discussions with its lending banks as arrangements are due to expire soon.
She added that the new money investment and significant deleveraging of the company’s balance sheet will provide the necessary stability to navigate the business through these “uncertain times”.
The retailer has praised its stakeholders, and its team, as well as suppliers and partners for providing the group with support and dedication during the Covid-19 pandemic.