French Connection Group is continuing to negotiate with landlords and is trying to seal new funding deals, warning that it is at risk of running out of cash in the coming months.
The fashion retailer’s stores remain closed due to coronavirus lockdowns, the company said in a stock exchange update, although its websites in the UK and US have seen sales rise. The company has been negotiating with suppliers to extend payment terms and is discussing rent holidays and deferred payments with landlords, as well as furloughing staff.
“In the light of the company’s current cash position and the continued expected weak trading environment, we have been in active discussions with a number of potential funding partners,” French Connection added.
“The board is confident of raising sufficient funds to support the business until the return of trading levels that are able to support the ongoing operations. This process is proceeding well and we are making good progress on due diligence and agreeing terms. Without securing additional funding and should the current Covid-impacted trading levels continue, the company’s cash resources will eventually be eroded in the coming months.”
Separately, retailer Topps Tiles said a phased reopening of its stores is now under way with social distancing measures introduced for customers and additional protection for staff. The company said 130 stores are open in this format and that a further 120 will introduce it by the end of May. The company expects to reopen its remaining 100 stores by the end of June.
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