Schuh secures 19 million pound bank facility

Footwear retailer Schuh has secured a 19 million pound finance facility to help mitigate the blow from the pandemic.

The funding has been secured with Lloyds Bank via the Treasury’s Coronavirus Large Business Interruption Loan Scheme (CLBILS).

The retailer, which has more than 120 stores in the UK and Ireland, said the money would simultaneously help its long-term liquidity while also lowering its expenses.

Importantly, it will help soften the blow of an expected drop in in-store sales well below what the company earlier forecasted for FY2020/21.

“Our business model has stood us in good stead to continue to meet customer demand throughout 2020. However, we are not immune from the costs that have been felt throughout the high street,” Schuh managing director Colin Temple said in a statement.

“As the all-important golden quarter of trading continues to play out with different tier systems to manage throughout our store estate, it’s only right that we continue to take steps to ensure we’re in the best shape to overcome further disruption in 2021.

“Being able to draw upon the deep retail expertise of Lloyds Bank has naturally been a great asset for us and will continue to be so as we navigate the challenges presented by Covid-19.”

Photo credit: Schuh, Facebook