The Sunday Telegraph has today reported that earlier this year Wyevale ‘came within a whisker’ of breaching its banking covenants after a slump in earnings.
This appears to confirm rumours that have been circulating within the trade that Terra Firma attempted to renegotiate terms with Wyevale’s banks, but one smaller lender refused.
As a result, the group’s owner was forced to prop-up Wyevale and buy out the bank’s debt at a cost, says the newspaper, of around £25m.
This, it says, was an embarrassment for Guy Hands.
Read the full article on http://www.telegraph.co.uk/business/2017/05/20/terra-firma-props-wyevale-garden-centres/.
Guy Hands comments:
At Chelsea on Monday, Guy Hands dismissed the reports in the Sunday Telegraph saying the breach in Wyevale’s banking covenant earlier this year had been merely technical and the departure of the bank said more about the bank than Wyevale.
Wyevale he said was doing very well.