Laura Ashley reaches emergency funding deal with Wells Fargo
Struggling retailer Laura Ashley has reached a deal for emergency funding with lender Wells Fargo.
Laura Ashley Holdings Plc
0.00p
07:45 20/03/24
Earlier this week, the company said that majority shareholder MUI was in talks with Wells Fargo about securing funds to allow it to continue trading. It said the two parties were discussing arrangements that would allow it to use sufficient funds from the Wells Fargo facility to meet immediate funding requirements and draw down additional amounts to meet ongoing working capital needs in the short to medium term.
The announcement was made after a press report over the weekend suggested that MUI was considering an emergency cash injection.
In a statement on Wednesday, Laura Ashley said talks between Malaysia’s MUI and the US bank had ended and the company "should be able" to utilise requisite funds from its working capital facility with Wells Fargo to meet its immediate funding requirements.
Laura Ashley insisted again, as it did on Monday, that this is not a cash injection by MUI.
"The company welcomes the support from MUI Asia Limited and continues to review its working capital needs on an ongoing basis."
At 1355 GMT, the shares were up 45% at 2.40p.