Confectionery producer Calico Cottage secures coronavirus funding
The Haddenham, Cambridgeshire-based manufacturer took a hit when the Government’s lockdown saw many of the retailers it supplied closed. June would have also been one of the busiest periods of the year for Calico, as it prepared for Christmas.
Calico Cottage managing director Nigel Baker said that many of the company’s seasonal customers were closed or operating a reduced online offer, cutting off a major source of income.
Reliance on seasonal orders
“As a manufacturer of chocolate and fudge-making ingredients, we rely on income from people visiting shops and seasonal peaks like Christmas,” he explained.
“Thanks to Lloyds Bank, we now have the flexibility to start focusing on long-term orders and ensure that we can hold stock whilst working with customers to help them re-start and plan for Christmas. Having this support has been invaluable and we can now start preparing for what we hope will be a busy end to the year.”
The flexibility that the funding has afforded Calico will allow it to jump straight back into supplying for its customers when they reopen. Alongside the six-figure funding package from Lloyds Bank, via the Coronavirus Business Interruption Loan Scheme, Calico Cottage has agreed a six-month repayment holiday to support cashflow.
Cashflow needs
Stephen Clarke, relationship manager at Lloyds Bank, added: “For manufacturers like Calico Cottage, working months in advance is the norm, but they need to have a healthy cashflow in place to plan ahead.
“We are supporting businesses like this to ease the impact on their income during this challenging time, enabling them to continue trading and planning for the year ahead.”
Meanwhile, the ongoing coronavirus crisis has forced brewing giant Marston’s to agree £70m of additional liquidity through an increased bank facility, as it waits for pubs to reopen.
