Abbeycrest agrees finance deal

JEWELLERY group Abbeycrest is looking to draw a line under its financial problems after agreeing a deal with its banks.

The Leeds-based firm breached its profit covenants with senior lender Burdale Financial in December and has been in talks about its banking facilities ever since.

It announced this morning that Burdale had agreed to extend the renewal date of its banking facilities until March 2014.

The company’s Thai subsidiary, ATL, has also agreed an increase of £3m with long-standing financial provider SCB.

Simon Ashton, executive chairman of Abbeycrest, said: “I am pleased that the Group has been able to agree revised and extended bank facilities with our banking partners.

“This will now allow us to focus on top-line growth as we continue to develop our design-led, branded jewellery ranges.”

The company has embarked on a major cost-cutting programme in its ‘brands’ division while its ‘essentials’ operation has also been restructured.