Lockdown reportedly forces Harrods to reorganise £200m credit facility terms
Harrods has been forced to reorganise its £200 million revolving credit facility as a result of the second lockdown in England.
According to The Sunday Times, the luxury department store renegotiated the terms of a credit line with the Qatar National Bank so as to avoid breaching covenants it made in April.
However, due to the closure of its Knightsbridge flagship store as part of the second lockdown for England, Harrods is reportedly at risk of breaching the covenants terms.
The COVID-19 pandemic has already been a huge blow for the department store, with a loss of foreign tourists and visitors.
In July, it made almost 700 job cuts out of its 4800 staff members (14%), mostly impacting the newest staff members in parts of the business most affected by the the first lockdown.
Managing Director Michael Ward has said that the business remained strong but that a full recovery would be impossible if the government sticks to plans to remove tax-free shopping for non-EU tourists.
TheIndustry.fashion has contacted Harrods for comment.