Greggs taps £150m from government

Greggs will receive £150m in funds from the Bank of England amid the ongoing coronavirus crisis, the bakery chain has confirmed. 

The group confirmed that it is now eligible to issue paper under the Covid Corporate Financing Facility (CCFF) scheme.  

Through the scheme, available credit will “meet the company’s liquidity needs for a prolonged closure period”, including a scenario where its sites would be unable to trade for the rest of the year.

It has now partially accessed the liquidity available under the facility by issuing commercial paper at a value of £150m and with a duration of 11 months.  

In addition to the funds, the group said it would continue to have a “constructive dialogue” with banking partners and keep open all options to address current and future financing needs.  

In a previous statement released on 23 March, the group estimated that the impact of prolonged site closures would be a net weekly cash outflow of £5m, as well as property rental costs of £11m each quarter.  

Following the government’s Job Retention Scheme and an examination of its cost base, it now expects the net cash outflow whilst closed will be £3.5m per week until the end of June.  

From July onwards the cost is anticipated to be £4.5m per week, including the cost of all property rents. 

Its cash at bank position is currently £47m, before receipt of the CCFF funding.  

CEO Roger Whiteside said: “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.”