Fashion

Laura Ashley secures vital loan deal


Laura Ashley secures vital loan deal

Laura Ashley has struck a deal to access a loan to fund its day-to-day
operations.

The company’s majority shareholder MUI Asia Limited has been in talks
with Wells Fargo to allow the British fashion and homeware retailer to
access a loan facility. On Wednesday evening, Laura Ashley said that those
talks have been concluded and that the group “should be able to utilise
requisite funds from its working capital facility with Wells Fargo to meet
its immediate funding requirements.”

As previously mentioned by the retailer, this is not a cash injection by
MUI Asia Limited into the group.

The retailer said: “The company welcomes the support from MUI Asia
Limited and continues to review its working capital needs on an ongoing
basis. The company will update shareholders in due course in relation to
the review of its working capital needs.”

The news comes after Laura Ashley announced on Monday that trading had
been “challenging”, with sales flat in the first seven weeks of the
year.

For the 26 weeks to 31 December 2019, total group sales at Laura Ashley
fell 10.8 percent to 109.6 million pounds year-on-year, with the company
citing the market headwinds and weaker consumer spending during the period
which led to a decline in sales of bigger ticket items.

The company expects to announce its interim results for the 6 months
ending 31 December 2019 on Thursday 20 February.

Photo credit: Laura Ashley, Facebook



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