UK high street fashion chain Ted Baker has signed an extension to its revolving credit facility with its existing lending syndicate to enable it to continue with delivery of its transformation plan.
The new agreement extends the revolving credit facility maturity to November 2023 and amends the covenants.
The existing revolving credit facility (RFC) of GBP108m (US$153m) maturing in September 2022 and restricted RCF of GBP25m maturing in January 2022, will be replaced by a new RCF of GBP90m reducing to GBP80m in January 2022 until maturity in November 2023.
Last year, Ted Baker outlined its transformation strategy, ‘Ted’s Growth Formula’, to drive a more profitable, cash-generative business.
Underpinned by the proceeds from the capital raising, the strategies aim is to focus on three key ‘building blocks’: stabilising the foundations, driving growth, and enhancing operational excellence.
Included are plans to overhaul Ted Baker product by making its apparel offering more relevant to all day/week occasions, and driving accessories, footwear and large licence partner categories.
In terms of its targets, the company intends to consolidate its supplier base from 150-plus to 100 in FY21, along with reducing its stock cycle from three to two years. It is also eyeing medium-term revenue growth of about 5% and EBITDA margin of 7% to 10% in FY23.