// Boux Avenue and Ryman are facing “material uncertainty”
// Owner Theo Paphitis is struggling to refinance the businesses but is prepared to inject his own cash into them
Theo Paphitis, owner of lingerie retailer Boux Avenue and stationery brand Ryman, flagged that the two firms face “material uncertainty” as he struggles to refinance the two businesses.
Despite this, the former Dragons’ Den panellist said he could repay its debts and is prepared to inject his own cash into the businesses.
He told The Guardian: “I am not concerned. Either we will renew [the loan] or we will pay it back. I’m confident and happy to put my money where my mouth is.”
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Ryman has a 25-year relationship with NatWest, the bank behind its coronavirus business interruption Loan (CBIL).
Paphitis said he did not expect difficulties in extending the term and if necessary it could be repaid.
He said negotiations had been held up by a requirement for government approval to extend a CBIL.
Ryman returned to profitability in the year to March 2022, with EBITDA hitting £1.3m against a £8.5m loss the previous year. Sales jumped 40.8% to £102.8m due to the easing of pandemic restrictions.
Despite the positive performance, Paphitis said Ryman was taking longer to bounce back post-pandemic than his other retail businesses as many of its stores are in city centre locations, which were seeing lower footfall due to the rise of home working.
“It has still not returned to pre-pandemic levels of trade. Year to date, sales are up 16.5%, there is good growth coming through and that’s fantastic but you have got to understand where we have come from,” he said.
Boux Avenue’s made a small EBITDA loss of £300,000, which was a “signficant improvement” on previous years.
