Greggs Taps Government Finance To Get Through Coronavirus Crisis
British baker Greggs, whose shops have been shuttered by the coronavirus emergency, has secured credit from a government support scheme to meet its liquidity needs for a prolonged closure period, the company has said.
The company said it now had sufficient available credit to cover a scenario where its shops were unable to trade for the rest of the year.
Greggs has so far issued €171.02 million (£150 million) of commercial paper with a duration of 11 months under the Bank of England's Covid Corporate Financing Facility (CCFF).
The firm said that while its 2,050 retail outlets are shut its net cash outflow would be about €3.99 million (£3.5 million) per week until the end of June and €5.13 million (£4.5 million) from July.
Greggs had cash of €53.6 million (£47 million) before receipt of the CCFF funding.
"Whilst many uncertainties remain, we have ensured that Greggs and its many stakeholders will be well supported through this difficult period and that the company will be in a position to return to profitable growth as soon as conditions allow," it added.