British fashion retailer Ted Baker has secured a long-term finance deal by extending its revolving credit facility (RCF) with its existing lending syndicate. This move comes as many fashion retailers are prioritizing securing long-term funding due to the impact of the pandemic.

Under the new agreement, Ted Baker’s RCF maturity has been extended to November 2023, with amendments to the covenants. The company also highlighted its strong net cash position of £66.7 million at the end of the previous financial year, which positions it well to continue its successful transformation plan.

Ted Baker expressed gratitude for the continued support of its existing lending syndicate. As part of the agreement, RCF deals worth £133 million, originally set to mature in 2022, will be replaced by a new RCF of £90 million (reduced to £80 million in January 2022) until the November 2023 maturity date.

The announcement of the finance deal followed Ted Baker’s decision to delay the release of its annual results report, which was initially scheduled for Wednesday. The company attributed the delay to disruptions caused by the pandemic and the resulting impact on audit work. The new release date for the results has been set for June 10.

Industry analysts expect Ted Baker’s annual results to reveal a pre-tax loss of approximately £79 million, with revenue expected to be around £340 million. Despite these challenges, the company remains optimistic about its future prospects, with the support of its lenders and its ongoing focus on its transformation strategy.

Useful links:
1. Ted Baker Official Website
2. BBC News Article on Ted Baker’s Finance Deal