Go Outdoors has struck a £33m refinancing deal with Barclays to plough investment into growing stores and its online business.
It is the outdoors specialist’s largest financing to date and covers the next three years with an option to extend to Autumn 2018.
Go Outdoors will use the money to grow its 44-strong store estate, refurbish shops and expand its online business.
Go Outdoors chief executive Chris Matthews said: “In the last twelve months we have transformed our multi-channel capabilities, expanded our own-brand portfolio, opened new stores and created jobs whilst reducing costs and streamlining our processes. We have a clear objective of market leadership built on an unwavering commitment to serving our customers.”
In the year to January 27, the retailer returned to profit, generating £1.5m pre-tax profit in the period, while sales jumped 19% to £171m.
In addition to the positive financial performance, Barclays said the strengthened Go Outdoors’ management team will be key in delivering the retailer’s growth ambitions.
Barclays corporate relationship director Pete Wilmer said: “Go Outdoors has assembled a first class management team and delivered a robust performance throughout the challenges of the recession.
“The bespoke funding package will provide the management team with the confidence and the platform to continue investing in the significant opportunities which exist for growth.”
The retailer has attracted a wealth of experienced executives to its management team over the past two years, including new chief executive Chris Matthews, the former managing director at Dixons Greek electricals chain Kotsovolos, who joined in February.
Stephen Ingram from BHP Corporate Finance advised Go Outdoors on the refinancing, while DLA Piper was Go Outdoors’ legal advisor.