THE RETAIL BULLETIN - The home of retail news
Lest we forget
Click here
Home Page
News Categories
Commentary
CX
Department Stores
Electricals and Tech
Entertainment
Fashion
Food and Drink
General Merchandise
Grocery
Health and Beauty
Home and DIY
Interviews
People Matter
Retail Business Strategy
Property
Retail Solutions
Electricals & Technology
Sports and Leisure
Christmas Ads
Shopping Centres, High Streets & Retail Parks
Uncategorized
Retail Events
People in Retail Awards 2024
THE Retail Conference
Retail Ecom North
Retail HR North 2025
Retail Omnichannel Futures 2025
Retail HR Central 2025
The Future of The High Street 2025
Retail Ecom Central
Upcoming Retail Events
Past Retail Events
Retail Insights
Retail Solutions
Advertise
About
Contact
Subscribe for free
Terms and Policies
Privacy Policy
Naked Wines at risk of breaching the terms of new lending facility

Naked Wines could be at risk of breaching one of the covenants on a new lending facility, as repeat customer sales fall short of its own… View Article

FOOD AND DRINK NEWS UK

Naked Wines at risk of breaching the terms of new lending facility

Naked Wines could be at risk of breaching one of the covenants on a new lending facility, as repeat customer sales fall short of its own forecasts.
The business entered the $60 million asset-backed lending facility this year to fund investment in wine stock levels and under a “base-case scenario”, the online wine company expects all covenants to be met over the next 12 months.

However the Times has said that based upon trading so far this year, repeat customer sales would need to fall by only 3.7% against forecasts to result in a breach of a covenant to profits in that sector.

“In the case of a breach of this covenant, management would approach the bank and request a waiver for this covenant breach,” said the retailer’s most recent annual report.

Chief executive Nick Devlin said the company did not require funding to support the core business, but had opened a lending facility to manage inventory associated with growth

Shares tumbled by almost 40% last month after the retailer warned its sales would take a hit this year due to “greater uncertainty” in the economy.

The London-listed firm cautioned its shareholders while reporting signs of waning customer retention and slower growth, warning that sales could plummet by as much as 4% in the year to the end of March.

Naked Wines “will not pursue growth at any cost and our guidance is that we intend to trade the business at or around breakeven this year,” Devlin said at the time.

Subscribe For Retail News