Card retailer again staves off imminent covenant breach risk

Wakefield-headquartered Card Factory has negotiated another waiver from its lenders, as it continues to grapple with the trading impacts of lockdown.

Last month, the high street greeting cards and gifts business, warned that as a result of pandemic related restrictions, it expected its covenants would be breached by the end of January.

However, its banking syndicate provided waivers for those anticipated covenant breaches until 28 February.

On Friday – 26 February – Card Factory stated: “We are pleased to confirm that we continue to engage in constructive discussions with our banking syndicate, who remain supportive of the company.

“The banks have provided further waivers in respect of anticipated covenant breaches through until 31 March 2021, taking account of the company’s cash flow projections, subject to certain conditions.

“We are engaged on a plan to refinance the company, and will provide a further update in due course. 

“Coupled with the expected reopening of the vast majority of the store estate during April, the Board is confident the business is well placed to deliver for the benefit of all stakeholders.

“The company welcomes the roadmaps to reopening non-essential retail by the UK and devolved governments and looks forward to welcoming our colleagues and customers back into our stores as soon as possible, once restrictions are lifted.”