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