High street bakery giant Greggs has confirmed plans are now in place to ensure it is kept afloat during the coronavirus pandemic.
Stores shut after lockdown was announced, leaving fans of its sausage rolls and steak bakes devastated.
Now the company has said that it believes it now has enough credit available to keep it afloat in a scenario where its shops are forced to stay shut for the rest of the year, reports Chronicle Live.
It said the funding from the Covid Corporate Financing Facility (CCFF) scheme is sufficient for its current liquidity needs, although it is understood that the company may be able to withdraw more funds and is also talking to its banks.
The high street giant estimated that it will face a £3.5m hit each week until the end of June, while its stores are shut for a prolonged period. It said it expects this to rise to around £4.5 million each month from July, including property rental costs, if the closures continue.
Greggs said it has also scrapped its latest dividend payout, while its chief executive Roger Whiteside has agreed to a 20% pay cut.
The company has placed the majority of its 24,900 staff on furlough, with the taxpayer covering 80% of their wages.
The FTSE 250 business said it has around £47m in the bank, before the receipt of the Government funding.
Greggs’ chief executive Roger Whiteside said: “Whilst many uncertainties remain, we have ensured that Greggs and its many stakeholders will be well-supported through this difficult period and that the company will be in a position to return to profitable growth as soon as conditions allow.”
