Fat Face owner Bridgepoint has injected £8.5m into the business to help the retailer’s expansion plans, it has emerged.
The private equity group, which bought the business in 2007, injected the new capital, according to accounts filed at Companies House. It has also secured better banking covenant terms including significantly improved headroom.
Sales at Fat Face in the year to May 30 rose 2.8% to £129.9m. Operating profit before interest, tax, depreciation and amortisation fell to £16.9m for the year from £18.9m.
Commenting on its restructure, the retailer said in its report: “As the economy slowly recovers from the problems of the last two years, we believe that all of these measures have put Fat Face onto a firm footing to deliver improved trading, although we remain realistic to the length of time that this recovery is likely to take.”
The group’s improved banking facilities took effect from March 4 and the new covenant terms start in May this year.
Fat Face chairman Alan Giles told Retail Week: “This gives the company forward financial security. It allows us to continue with new openings – we want to open between 15 and 20 stores a year.”
Next month a new chief executive will take the helm at Fat Face, former George at Asda managing director Anthony Thompson.