Redrow eligible for govt support; furloughs 80% of workforce
Housebuilder Redrow said on Thursday that it is eligible for access to £300m funding from the government’s Covid Corporate Financing Facility and that it has furloughed 80% of its staff due to the outbreak.
As well as the additional funding from the government scheme, the company is in talks for a further £100m of headroom under the existing revolving credit facility with its six relationship banks. These are progressing "well" and the documentation is expected to be concluded by the end of the month, it said. As a result, the RCF will increase from £250m to £350m.
Redrow said around 80% of its workforce has been furloughed under the Government's Job Retention Scheme. In addition, on 27 March the board and senior directors volunteered to take a 20% cut in salary for the duration of the crisis. Since then, the wider directorate in the business have also volunteered to take a 20% salary reduction.
Executive chairman John Tutte said: "The positive progress we have made on securing additional banking facilities means we can now finalise plans for our valued workforce and supply chain, to make an orderly return to work when we are advised it is safe to do so."