Banking Syndicate Provides Waivers and Explores Solutions

  • Card Factory receives a one-month extension for covenant breaches until February 28th
  • Revenue fell to £281.4m from £424.5m in the previous year
  • The company expects a loss of around £10m if stores remain closed until January 2021
  • Executive Chairman Paul Moody acknowledges efforts to make stores Covid-secure

Card Factory has been granted a one-month extension on covenant breaches by its banking syndicate until February 28th, 2021. The company had previously warned it would breach its banking covenants by the end of January, with access to £200m debt facilities. The group is in constructive discussions with banks to explore potential solutions and may receive further extensions. Despite a significant drop in revenue (£281.4m from £424.5m last year) due to reduced footfall across all stores, Card Factory expects a loss of around £10m if its stores remain closed until January 2021. Executive Chairman Paul Moody praised the company’s efforts in making stores Covid-secure.

Factuality Level: 10
Factuality Justification: The article provides accurate information about Card Factory’s extension on covenant breaches, its financial situation due to COVID-19 impact, and the company’s efforts to maintain a safe shopping environment.
Noise Level: 3
Noise Justification: The article provides relevant information about Card Factory’s extension on covenant breaches and its financial situation during the pandemic, but it lacks in-depth analysis or exploration of long-term trends or possibilities.
Financial Relevance: Yes
Financial Markets Impacted: Card Factory’s banks
Financial Rating Justification: The article discusses Card Factory’s covenant breaches and the extension provided by its banking syndicate, which impacts financial markets through the company’s debt facilities and potential solutions being explored.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk