March 20, 2020 / 7:30 PM / 14 days ago

BRIEF-Ted Baker gives COVID-19 Update, Says There's Been Minimal Disruption To Co's Supply Chain

March 20 (Reuters) - Ted Baker PLC:

* TED BAKER PLC ISSUES STATEMENT ON SALE AND LEASEBACK OF TED BAKER’S HEADQUARTERS, ADDITIONAL LOAN FACILITY AND COVID-19 UPDATE

* HAS EXCHANGED CONTRACTS WITH WHOLLY OWNED UNIT OF BRITISH AIRWAYS PENSION TRUSTEES IN RESPECT OF SALE OF ISSUED SHARE CAPITAL OF BIG LOBSTER

* CONSIDERATION FOR SALE IS £78.75 MLN AND WILL BE PAID IN CASH ON COMPLETION, WHICH IS EXPECTED TO TAKE PLACE IN JUNE 2020

* NET PROCEEDS OF SALE OF AT LEAST £72 MLN WILL BE APPLIED TO REPAY EXISTING INDEBTEDNESS TO SIGNIFICANTLY DE-LEVER GROUP

* HAS ENTERED INTO A SHORT-TERM LEASE OF PROPERTY FOR A PERIOD FOLLOWING COMPLETION

* AT COMPLETION WILL ENTER INTO AN OPTION WITH PURCHASER TO TAKE A LONG-TERM LEASE OF PART OF ADJACENT NEWLY DEVELOPED PROPERTY

* CO WELCOMES 100% BUSINESS RATES HOLIDAY FOR NEXT 12 MONTHS, WHICH WAS ANNOUNCED BY UK GOVERNMENT TO SUPPORT RETAIL BUSINESSES

* PAID UK BUSINESS RATES OF £6.2M IN FY 2020

* ITS LENDING BANK SYNDICATE CONTINUES TO BE SUPPORTIVE, AGREED TO RAISE HEADROOM UNDER GROUP’S FACILITIES BY £13.5 MLN UNTIL 18 DEC

* TO DATE, THERE HAS BEEN MINIMAL DISRUPTION TO GROUP’S SUPPLY CHAIN WITH SIGNIFICANT MAJORITY OF FACTORIES IN CHINA NOW OPERATIONAL

* IN LINE WITH PRIOR GUIDANCE, GROUP ANTICIPATES UNDERLYING PRE-TAX PROFIT TO BE WITHIN £5-10M RANGE FOR YEAR ENDED 26 JANUARY 2020

* GROUP DOES NOT CURRENTLY ENVISAGE SUPPLY DISRUPTIONS AND “INVENTORY LEVELS ARE SUFFICIENT”

* GROUP CURRENTLY HAS 197 RETAIL STORES AND CONCESSIONS CLOSED OUT OF A TOTAL 416 LOCATIONS GLOBALLY AFTER VIRUS OUTBREAK

* GROUP’S STORES HAVE FULL SHUT DOWN IN USA, CANADA, FRANCE, SPAIN, GERMANY, PORTUGAL AND BELGIUM

* GROUP HAS EXPERIENCED REDUCED TRADING HOURS ACROSS ITS OTHER MARKETS

* TOO EARLY TO PROVIDE MEANINGFUL GUIDANCE FOR FY 2021 Further company coverage:

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