Greggs secures £150m COVID-19 support
The bakery chain expects to take a weekly hit of £3.5m if shops are closed until end-June.
Greggs has received £150 million in backing to navigate COVID-19’s impact on trading.
In a trading update, the bakery confirmed that it is being supported by the Bank of England’s Covid Corporate Financing Facility (CCFF) scheme.
Greggs said the cash is sufficient “to meet the company’s liquidity needs for a prolonged closure period, including a scenario where shops are unable to trade for the rest of the year.”
The chain expects to take a weekly hit of £3.5 million if its shops are closed until the end of June, with the figure rising to £4.5 million from July onwards.
“Whilst many uncertainties remain, we have ensured 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,” chief executive Roger Whiteside said.
Whiteside earlier agreed to a 20% pay cut to help the business during the coronavirus outbreak, whilst the company has placed the majority of its near 25,000 staff on furlough with its shops closed.
