Ruia’s banker seeks security

BOLTON textiles business the Ruia Group has renegotiated its banking facilities with HSBC.

Under the terms of the deal HSBC, the group’s long-term banker, has secured a charge over the group’s property assets.

A mortgage document filed at Companies House shows that money owed to the bank has now been secured on a range of assets including all freehold and leasehold land and plant and machinery.

Finance director Vimal Ruia admitted it was unusual the loans had previously been unsecured but said the arrangement was symptomatic of the “new environment” following last year’s banking crisis.

He said: “It’s been flagged up for a few months. This is what all bankers are going to need. We’ve had a fairly strong balance sheet. It’s to do with the capital ratios they require.”

Mr Vimal would not discuss the value of the group’s bank facility.

The Ruia Group is a family-owned business that operates from a 240,000 sq ft mill at Kearsley near Bolton. It imports and distributes textiles under several brand names including Farah, Jeep, Osan and Richard Haworth.

The group, which employs 300 staff, recorded pre-tax profits of £1.8m on £45.4m turnover in its most recent filed accounts for the year to April 30, 2008.