Leicester headquartered footwear retailer Shoe Zone has secured a £15 million loan to help it cope with the impact of the coronavirus crisis.
But the listed company, which is based in Humberstone Road, has said that more needs to be done to protect its financial position going forward.
In a recent trading update, the company, which has stores across the country, reported that in the six months to March 31, turnover was £69.9 million. This was down on the £73 million it achieved in the same period last year.
The company added that no interim dividend would be paid as the business needed to conserve cash.
Talking about the £15 million loan, in a statement, Shoe Zone said: “The new facility will provide additional liquidity to the company during a period where all of its retail stores are closed.
"The timing of the reopening of the company's stores remains uncertain; moreover the process of reopening, once it begins, is likely to be complex.
Leicestershire news
"The company is in ongoing negotiations with all of its suppliers and landlords and, with the co-operation and understanding of these stakeholders, the board consider the company's current level of funding will be sufficient to secure the future of the business, assuming that stores are allowed to open gradually during the summer months and return to a high proportion of previous sales over the next year.
"Over the forthcoming financial periods, Shoe Zone will focus on rebuilding cash balances to a higher level than previously carried, repaying debt, and fulfilling other statutory obligations.
"The board believes that this focus is necessary to ensure the long term viability of the business, and the company will therefore only recommence the payment of dividends to shareholders once these objectives have been met.”