// Schuh secures new £19 million finance facility with Lloyds Bank
// The business secured the funding via the Treasury’s Coronavirus Large Business Interruption Loan Scheme
// It will aim to bolster the firm’s long-term liquidity
Schuh has secured a £19 million finance facility with Lloyds Bank as it seeks to bolster its outlook in the wake of the Covid-19 crisis.
The shoe retailer secured the funding via the Treasury’s Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The planned refinancing of its existing facility with Lloyds is expected to aid the firm’s long-term liquidity while lowering its expenses through the interest margin benefit.
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The retailer has more than 120 stores in the UK and Ireland alongside an ecommerce platform.
The new finance package is just one of a number of measures Schuh has put in place to ensure it is best positioned to trade through the pandemic.
In-store sales are expected to drop well below forecast for FY2020/21 despite a bounce in trading following the first national lockdown.
“Our business model has stood us in good stead to continue to meet customer demand throughout 2020,” Schuh managing director Colin Temple said.
“However, we are not immune from the costs that have been felt throughout the high street.
“As the all-important golden quarter of trading continues to play out with different tier systems to manage throughout our store estate, it’s only right that we continue to take steps to ensure we’re in the best shape to overcome further disruption in 2021.
“Being able to draw upon the deep retail expertise of Lloyds Bank has naturally been a great asset for us and will continue to be so as we navigate the challenges presented by Covid-19.”
Lloyds Bank Head of Retail and Consumer Aled Patchett said: “schuh has been a mainstay of the British high street for more almost 40 years and has developed a loyal customer base in that time.
“Like many retailers, they continue to face novel challenges and so we’ve worked closely together to deliver a funding package that will positively support their long-term financial outlook.”
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