Card Factory gets breathing space from banks

Wakefield-based greeting card and gift retailer Card Factory plc on Friday issued an update regarding its liquidity. 

“We reported on 14 January 2021 that, as a result of recent and current lockdowns, we anticipated that our banking covenants would be breached at the end of January,” said Card Factory.

“We also noted that we were in constructive discussions with our banking syndicate. 

“We are pleased to announce that our banking syndicate has provided waivers in respect of anticipated covenant breaches through until 28 February 2021 taking account of the company’s cash flow projections, subject to certain conditions.

“We remain in constructive discussions with our banks, and have agreed a process to continue to explore a range of potential solutions, with scope for further extensions to the waivers as this process continues. 

“A further update will be provided in due course.”

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