An Exeter wholesale firm that lost virtually all of its custom amid the Covid-19 outbreak has found more than 9,000 new customers by transforming into a home delivery service - thanks to a Government loan.
Family-owned J&R Food Service, which supplies frozen, chilled and ambient food predominantly to pubs, cafes and restaurants across the South West, secured a six-figure finance facility from HSBC UK after seeing 95% of its business fall away.
It instead set up a home delivery service to provide essential food deliveries during lockdown and said it will continue when the lockdown ends.
Since lockdown began in March, the business has seen more than 9,000 registrations for the home delivery service, including many elderly people.
John Whitechurch, chairman at J&R Food Service, said: “HSBC UK’s support over the last few weeks has been tremendous and without this new round of funding, we’d be in a very different position to the one we’re in now.
“With the foresight of our MD, we’ve turned J&R Food Service from a wholesale business into a much-needed retail business almost overnight and thanks to the bank’s speedy response, we had the cash flow we needed to get it off the ground. Not only has this allowed us to serve our local community at a time of crisis, but it’s ensured we’re financially fit for the future.”
The loan from HSBC UK is part of the bank’s Coronavirus Business Interruption Loan Scheme (CBILS), which is available for existing customers with a group turnover of up to £45million. The Government guarantee will secure bank loans to viable businesses with a sound borrowing proposal.
James Jordan, HSBC's head of corporate banking in Devon, Cornwall and Somerset, said: “J&R Food Service has shown incredible agility and ingenuity at a time of considerable uncertainty for the food service industry.
“Having lost almost 95% of its wholesale business, it quickly transformed itself into a consumer-facing business using the power and reach of social media.
“With the extra money behind it from HSBC UK, the business can still pay suppliers and furloughing staff has been kept to a minimum as the team responds to thousands of requests for food each day. We’re delighted to have played our part in the future of this fantastic business.”
The Sterling Super Group bought J&R Food Service in 2003 when it distributed frozen fish using its fleet of just four vans.
Today, the business operates 45 vans and lorries and has expanded its offering to include frozen, chilled, fruit and vegetables and ambient food.
The business employs almost 100 people at its Exeter Airport Business Park headquarters, most of whom have been retained to meet demand for its new home delivery service.
