// French Connection receives $6.5m loan for US business
// Fashion retailer notes “encouraging” trade across stores in England and Wales since being able to reopen
French Connection on Friday announced its US business has secured USD 6.5 million (£4.9 million) in additional funding, noting that trade has been “encouraging” at its stores in England and Wales since reopening on Wednesday December 2.
In a trading update this morning the UK-based fashion retailer said it had secured funding through the Main Street Lending Programme to support its US-based operations and employees.
The loan is for a period of five years, with repayments due from the end of the third year.
French Connection noted that its US business is predominantly wholesale, and that the loan will provide the working capital needed “at certain times of year to operate”.
“Looking forward there will continue to be considerable challenges, with both the ongoing impact of COVID-19 and the uncertainty relating to Brexit but we feel we are well positioned to capitalise on any opportunities that arise,” the retailer added.
French Connection said that since its half year results on October 13, its ecommerce channels had continued to trade positively despite adopting “a less promotional stance”.
Wholesale has performed well with the company’s major online customers continuing to trade and take deliveries throughout the period.
French Connection added that its Spring 21 orders are currently ahead of its expectations.