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<\/div>\n\/\/<\/span> Homebase repaid its \u00a3132m loan to owner Hilco shortly after receiving millions from the government in Covid support<\/h6>\n\/\/\u00a0<\/span>The home improvement retailer collected \u00a340m in business rates relief and furlough money<\/h6>\nHomebase owner Hilco received a payout of \u00a3132m shortly after the retailer collected millions from the government\u2019s Covid-support scheme.<\/p>\n
The home improvement retailer repaid a long-term loan to its parent company in January 2022, according to its latest annual accounts.<\/p>\n
The repayment came shortly after Homebase received \u00a340m in business rates relief and furlough money, as well as after it had negotiated a three-year extension on its \u00a395m loan.<\/p>\n
However, Hilco was forced to provide \u00a345m of fresh funding within months of receiving its payout as the retailer had breached covenants of its Wells Fargo loan agreement.<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span><\/p>\nHomebase profits plummeted 56% to \u00a330m in the year to 26 December 2021 due to \u201csubdued demand\u201d and zero sales growth, which its bosses warned was to continue in the current financial year.<\/p>\n
The accounts show Hilco provided auditors with a \u201cletter of comfort\u201d that they would supply further funds if needed for the retailer to be signed off as a going concern \u2013 meaning it was able to continue trading for the period to 30 June 2024.<\/p>\n
\u201cWhilst the cost-of-living crisis continues to be an ongoing challenge across the UK and Ireland, the director believes the business remains resilient and well placed to manage the Homebase Group\u2019s working capital and funding needs,\u201d the retailer said.<\/p>\n
Last month, Homebase predicted a strong summer after it hit record sales over the Bank Holiday weekend thanks to the warmer weather.<\/p>\n
Chief executive Damian McGloughlin said: \u201cAfter a tough winter and a slow start to spring, we\u2019re now seeing strong performance and we\u2019re confident the market is headed in the right direction.<\/p>\n
Homebase owner Hilco received a payout of \u00a3132m shortly after the retailer collected millions from the government\u2019s Covid-support scheme.<\/p>\n
The home improvement retailer repaid a long-term loan to its parent company in January 2022, according to its latest annual accounts.<\/p>\n
The repayment came shortly after Homebase received \u00a340m in business rates relief and furlough money, as well as after it had negotiated a three-year extension on its \u00a395m loan.<\/p>\n
However, Hilco was forced to provide \u00a345m of fresh funding within months of receiving its payout as the retailer had breached covenants of its Wells Fargo loan agreement.<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span><\/p>\nHomebase profits plummeted 56% to \u00a330m in the year to 26 December 2021 due to \u201csubdued demand\u201d and zero sales growth, which its bosses warned was to continue in the current financial year.<\/p>\n
The accounts show Hilco provided auditors with a \u201cletter of comfort\u201d that they would supply further funds if needed for the retailer to be signed off as a going concern \u2013 meaning it was able to continue trading for the period to 30 June 2024.<\/p>\n
\u201cWhilst the cost-of-living crisis continues to be an ongoing challenge across the UK and Ireland, the director believes the business remains resilient and well placed to manage the Homebase Group\u2019s working capital and funding needs,\u201d the retailer said.<\/p>\n
Last month, Homebase predicted a strong summer after it hit record sales over the Bank Holiday weekend thanks to the warmer weather.<\/p>\n
Chief executive Damian McGloughlin said: \u201cAfter a tough winter and a slow start to spring, we\u2019re now seeing strong performance and we\u2019re confident the market is headed in the right direction.<\/p>\n
Homebase profits plummeted 56% to \u00a330m in the year to 26 December 2021 due to \u201csubdued demand\u201d and zero sales growth, which its bosses warned was to continue in the current financial year.<\/p>\n
The accounts show Hilco provided auditors with a \u201cletter of comfort\u201d that they would supply further funds if needed for the retailer to be signed off as a going concern \u2013 meaning it was able to continue trading for the period to 30 June 2024.<\/p>\n
\u201cWhilst the cost-of-living crisis continues to be an ongoing challenge across the UK and Ireland, the director believes the business remains resilient and well placed to manage the Homebase Group\u2019s working capital and funding needs,\u201d the retailer said.<\/p>\n
Last month, Homebase predicted a strong summer after it hit record sales over the Bank Holiday weekend thanks to the warmer weather.<\/p>\n
Chief executive Damian McGloughlin said: \u201cAfter a tough winter and a slow start to spring, we\u2019re now seeing strong performance and we\u2019re confident the market is headed in the right direction.<\/p>\n