The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Struggling British fashion retailer Ted Baker has refinanced by extending a revolving credit facility with its existing syndicate of lending banks, it said on Tuesday.
The group said that under the new agreement a facility of £108 million ($153 million) maturing in September 2022 and a restricted facility of £25 million maturing in January 2022, will be replaced by a new facility of £90 million reducing to £80 million in January 2022 until maturity in November 2023.
Ted Baker, which has seen sales plunge during the Covid-19 pandemic, said the amended facility includes changes to covenant tests related to earnings.
It said that when combined with its net cash position of £66.7 million at the end of its financial year to January 30 2021, the group has the necessary cash and liquidity to execute its turnaround plan.
ADVERTISEMENT
On Monday, Ted Baker pushed back publication of its full year results from May 27 to June 10. It said the results will be in line with consensus expectations.
Shares in Ted Baker closed Monday at 180 pence, valuing the business at £332 million.
By James Davey; Editors: Louise Heavens and Kirsten Donovan
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.