Halfords drives ahead with £25m boost

Motor accessories and leisure goods retailer Halfords has secured a £25m cash injection.

The Redditch headquartered business secured the additional funding from its existing lending syndicate, in which HSBC UK participates, as part of the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

The funding, which was equally split between HSBC UK and two other high street banks, will support the business as it continues to navigate Covid-19.

As an essential retailer, most of Halfords’ 800+ stores and garages across the country remained open during lockdown, giving customers access to bikes, car repairs, and other important products and services.

With more stores now opening up with social distancing measures in place, the funding will ensure Halfords can continue to trade confidently over the coming months.

Loraine Woodhouse, chief financial officer at Halfords, said: “While our market-leading motoring and cycling businesses have strong macro tailwinds, this additional contingency funding gives us even greater confidence in our ability to trade our way successfully through the current uncertain environment. We would like to thank our lenders for their ongoing support.”

Akhil Shah, relationship director at HSBC UK, added: “Whether you’re travelling by bike or car, Halfords has played a particularly important role in keeping the country moving in recent months. However, like all retailers, the business has faced unprecedented challenges. As the lockdown restrictions ease and more of its stores open, this additional funding gives Halfords the confidence and the headroom to continue serving its customers effectively.”

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