Direct bookseller The Book People has secured a £15m asset-based loan facility from specialist lender Burdale to support current and future working capital requirements.
The deal is Burdale’s first to be made public in the retail sector since the collapse of variety store group Woolworths, with which the lender was associated.
The Book People founder Ted Smart said he was “delighted” with the arrangement. “We are confident that the service and facilities provided by Burdale will better serve the ends of our company and provide the stability and security required to ensure we can continue to growth the business,” he said.
Burdale structured finance director Jon Norton said he looked forward to working with The Book People’s management to “achieve the company’s strategic potential”.
The Book People is the UK’s leading direct books business. It sells through its own web site and catalogues, and manages fulfilment for brands such as Guardian Books and The TV Book Club.
The retailer typically buys a small number of titles in large quantities, which are then aggressively promoted.