Fat Face owner Bridgepoint has injected £8.5m into the lifestyle retailer to fund its expansion plans, it has emerged.
According to accounts filed at Companies House, private equity group Bridgepoint, which bought the business in 2007, has also secured better banking covenant terms including significantly improved headroom.
Sales at Fat Face in the year to May 30 rose 2.8% to £129.9m. Operating profit before interest, tax, depreciation and amortisation fell to £16.9m for the year from £18.9m.
Commenting on its restructure, the retailer said in the report: “As the economy slowly recovers from the problems of the last two years, we believe that all of these measures have put Fat Face onto a firm footing to deliver improved trading, although we remain realistic to the length of time that this recovery is likely to take.”
The group’s improved banking facilities took effect from March 4 and the new covenant terms start in May this year.
Fat Face chairman Alan Giles said: “This gives the company forward financial security. It allows us to continue with new openings – we want to open between 15 and 20 stores a year.”