Topps Tiles has sold and leased back its national headquarters to raise cash to support it through the lockdown.
The business, the UK’s biggest tile specialist, said it was raising £18.1 million – £17.9 million including costs – from the sale of its head office and main warehouse buildings at Grove Park, next to junction 21 of the M1 at Leicester.
The buyer, UK Warehouse Properties, is expected to complete on the deal in the coming days.
Shares in the business were up around 4 per cent this morning, though are still around half what they were trading for prior to the lockdown.
As a result of the pandemic, Topps Tiles has launched a controlled entry system in its shops along with a click and collect service. Its website has also reported brisk sales, with more people shopping at home.
In a trading update, the business said: “The proceeds from the sale will further strengthen the group’s financial position as it responds to the COVID-19 crisis.
“Based on the group’s net debt position at 29 May 2020, at completion of the sale, the group would have net debt of circa £7 million with circa £42 million of available liquidity (including the credit approved CLBILS £10 million loan facility which the company announced on 19 May 2020 and which is due to be finalised shortly).
“In connection with the sale, the group has entered into leases for the properties for a 20 year period following completion, for an annual rent of £1.2 million.”
