Shop Direct secures 150 million pounds in funding
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Online British retailer Shop Direct has secured 150 million pounds in funding from its parent company, Shop Direct Holdings Limited (SDHL).
The The Littlewoods.com and Very.co.uk owner said that 75 million pounds of the funding will be invested by way of equity injection before the end of November, while the group is still evaluating alternatives for the remaining 75 million pound, including equity and debt financing options.
The group also said it had received “an offer of an underwritten commitment for up to 100 million pounds of new notes” issued under its securitisation programme.
The company announced in October its intention to raise the 150 million pounds in funding to cover costs of payment protection insurance (PPI).
The company said: “The committed funding available to our parent shareholder enables SDHL and Shop Direct to address fully the group’s funding needs from the increased final PPI provision; together with the alternative funding options being evaluated, this once again demonstrates investor support for our proven operating model.”
Photo credit: Very, Facebook