Greggs receives £150m Government coronavirus loan
Greggs said it believes it now has enough credit to keep it afloat in a scenario where its shops are forced to stay shut for the rest of the year.
Greggs has secured £150 million from the Treasury and the Bank of England’s emergency coronavirus fund after closing stores.
The bakery chain said it believes it now has enough credit available to keep it afloat in a scenario where its shops are forced to stay shut for the rest of the year.
It said the funding from the Covid Corporate Financing Facility (CCFF) scheme is sufficient for its current liquidity needs, although it is understood that the company may be able to withdraw more funds.
The high street giant, which has around 2,050 sites nationwide, estimated that it will face a £3.5 million hit each week until the end of June, while its stores are shut for a prolonged period.
It said it expects this to rise to around £4.5 million each month from July, including property rental costs, if the closures continue.
Greggs said it has also scrapped its latest dividend payout, while its chief executive Roger Whiteside has agreed to a 20% pay cut.
The company has placed the majority of its 24,900 staff on furlough, with the taxpayer covering 80% of their wages.
The FTSE 250 business said it has around £47 million in the bank, before the receipt of the Government funding.
Earlier this week, budget airline EasyJet became one of the first large firms to secure funding from the Bank of England facility, borrowing around £600 million.