Home retail giant Homebase has confirmed it has secured an asset-based lending facility of up to £95m with Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC).
“We are really pleased to have secured lending facilities from Wells Fargo as Homebase achieves another milestone in delivering its turnaround plan,” said Damian McGloughlin, CEO. “We look forward to working closely with Wells Fargo, who have provided a bespoke facility that supports the working capital requirements of the business.”
The refinancing is the latest milestone achievement for the Homebase business, which is in the midst of delivering its turnaround plan. Following the successful agreement to the Company Voluntary Arrangement, which was supported by 96% of all creditors, along with improved trading and execution, EBITDA for the first four months of the current financial year is already £35m ahead of last year, and the business is on track to return to profitability by the end of 2019.
Homebase appointed experienced retailer Ian Topping as part-time non-executive chairman to provide support to its management team last month. Of his appointment, Mr Topping said: “Homebase has been a mainstay of UK and Ire
land retail for over 40 years and I am very pleased to join the company as chairman. The challenges Homebase has faced in recent years have been well documented, however, it continues to have a unique market position, and there is huge potential for the business to return to a position of strength. I am excited to be playing a part in this, and I am proud to be a part of this great business.”
Mr McGloughlin continued: “We are working with all our stakeholders to capitalise on the opportunities in the home improvement market in the UK and Ireland, and I would like to thank our team members, suppliers, and landlords for their continued support as we work towards returning to profitability.”
“We are delighted to have the opportunity to work with the Homebase team,” said Steven Chait, managing director and head of EMEA at Wells Fargo Capital Finance. “This asset-based credit facility, tailored to support the turnaround of the business, demonstrates Wells Fargo’s capability in providing a financial solution that fits well with the needs of our clients.”