St Austell Brewery has secured a “significant” loan from its bankers to enable it to weather the coronavirus lockdown and plan for the future.
The company, which announced 100 job losses in 2020 as a result of the Covid-related downturn, said the working capital secured from Barclays, HSBC 海角视频, and NatWest will ensure that it has the capacity to withstand the challenges of the pandemic and invest strategically for the long-term success of the company.
The brewery, which remains independent and family-owned, has a long pedigree in Cornwall and the wider South West region, also owning Bath Ales.
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Famous for its beers – including Tribute and Proper Job –the business supplies retailers and licensed premises throughout the country and exports internationally. It also owns more than 180 pubs, inns and hotels across the West Country – including managed houses and tenanted properties.
Colin Stratton, chief finance officer, St Austell Brewery said: “We’re delighted to have secured our funding needs for both the short and medium term.
“As many businesses in the hospitality sector face increasing uncertainty as a result of Covid-19, and the consequences for the wider economy, this funding will enable us to look forward with confidence and underpin our plans for the future progression of the business.
“We can now continue to invest in our pubs and ensure that, when we emerge from this third lockdown, they are well positioned to meet the evolving needs of our customers.
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“As a business, it’s vital that we adapt our offering to changes in the market and consumer behaviour, while still ensuring that we consistently deliver a warm welcome and great hospitality. This funding support will enable us to do just that.”
Jim Turner, relationship director at Barclays, added: “The pandemic has forced lots of businesses to temporarily suspend or limit their operations.
“The Barclays funding will give the company enough momentum to get through in this uncertain time and be ready to bounce back when demand returns.
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“They have weathered economic crises before in their 170-year history and I’m sure will draw on the strength of the company to do so once again.”
Stuart Allison, relationship director at NatWest, said: “We have worked closely with St Austell Brewery since the beginning of April to support the company through enforced closures and restricted trading as a result of the Covid-19 pandemic.
“At NatWest we know how important it is to keep looking forward and have provided our expertise to create a specialist funding package to help with the brewery’s long-term investments.”
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In late 2020 St Austell Brewery chief executive Kevin Georgel called for Government grants for all pubs, tax cuts and a long-term support plan.
In October 2020. St Austell Brewery announced it was cutting up to 100 jobs, and put staff on furlough at the start of the second lockdown in November.