H&M Group has signed a new 12-month revolving credit facility of €980 (£862m) to strengthen its financial position through the coronavirus crisis.
The Swedish fashion retailer has also been given a six-month extension option to “further strengthen its liquidity buffer and financial flexibility in response to the Covid-19 situation”.
The credit line has been arranged with H&M Group’s existing lenders, including SEB, BNP Paribas, Danske Bank, Standard Chartered Bank and Commerzbank.
H&M has an existing underdrawn €700m (£615m) revolving credit facility from 2017 that matures in 2024.
H&M Group said its liquidity “remains good”, and that it “is continuing its work to set up a combination of different financing solutions”.
In its most recent results, for the three months to 29 February, H&M Group’s net sales increased by 8% to SEK54,948m (£5bn) year on year. However, sales were impacted in the second half of the quarter by the coronavirus pandemic.
At the time of reporting on 16 March, it stated that March sales had so far been negatively impacted.
The group said it has since been negotiating with landlords over options of a rent holiday or a move to turnover-based rents in the UK.
Meanwhile, H&M has confirmed that it has not cancelled any orders where the manufacturing has started.
An H&M spokeswoman said: “We will stand by our commitments to our garment manufacturing suppliers by taking delivery of the already produced garments as well as goods in production. We will of course pay for these goods and we will do it under agreed payment terms. In addition, we will not negotiate prices on already placed orders. This is in accordance with our responsible purchasing practices and not only the case in Bangladesh, but in all production countries.”