海角视频

Oops.

Our website is temporarily unavailable in your location.

We are working hard to get it back online.

PRIVACY
Economic Development

HSS Hire looks to raise 拢54m from shareholders to pay off loan debt after difficult year

The firm said earlier this month it is to cut around 300 jobs and close 134 branches

HSS Hire looks to raise 拢54m from shareholders to pay off loan debt(Image: PA)

Manchester-based tool rental firm HSS Hire is looking to raise £54m from shareholders to pay off loans and keep its lenders happy.

The firm, which earlier this month announced plans to cut 300 jobs, said on Monday it hopes to hit the target by the end of the year.

According to PA, it will let the firm stay within its debt covenants - the strings attached to the money it has borrowed.

So far HSS Hire has been able to stay within the covenants by reducing costs and preserving liquidity.

However, as economic challenges from Covid-19 look set to continue for "a prolonged period", it is possible that the business could breach its covenants at the end of this year.

Therefore it would be "prudent" to raise cash before 2020 is over, the board decided, and it has been backed by major investors Toscafund Asset Management, Ravenscroft, and Exponent Private Equity.

"This transaction is a major vote of confidence from three shareholders representing over 75% of the company's shares," said chairman Alan Peterson.

"This capital injection will enable the group to further reduce its leverage - one of our foremost objectives - and gives us a strong platform from which to continue to implement change and drive growth."