Furniture retailer Steinhoff Europe, which operates Harveys and Bensons for Beds, has increased its funding facilities “in preparation for growth”, according to its lender Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB).
“The funding will be used to support Steinhoff’s UK and European businesses, along with the Pacific Rim and Southern Africa,” said RBS CIB.
Steinhoff UK operates about 500 stores across the country. In the six months to December 31 the UK arm of the South African company revenues were up 11% to ZAR3,067m (£220m).
RBS CIB said the latest funding deal involves a “significant refinancing of existing debt coupled with an increase in working capital to support on-going expenditure and investment”.
Steinhoff UK chief financial officer Philip Dieperink said: “The integrated nature of our operations in the UK has played a pivotal role in the success of our retail business.
“Our bedding retail operations are supported through the value chain and include our foam and manufacturing operations situated in Wellington. We remain fully optimistic about our business in the UK and our strategic aspirations during what has been a challenging trading environment.”
RBS CIB senior relationship directorIan Bamber said: “RBS CIB has maintained a very strong relationship with Steinhoff and we hold the management team in very high regard. This latest funding builds on this strong relationship.
“We are delighted that Steinhoff has continued to perform in what has been a very challenging UK retail market and we believe they are well positioned to continue benefitting from a formidable, customer-centric growth strategy.”