Redrow is the latest housebuilder to announce that it is furloughing 80% of its workforce in an attempt to ease COVID-19 woes
In a COVID-19 update, Redrow has confirmed it is an eligible issuer for the COVID Corporate Financing Facility (CCFF) with an issuer limit under the facility of £300m.
The facility is currently undrawn.
Negotiations for the additional £100m of headroom under the group’s existing Revolving Credit Facility (RCF) with its six relationship banks are progressing well and the documentation is expected to be concluded by the end of April. This will result in the existing RCF increasing from £250m to £350m.
To protect its cash flow, around 80% of its workforce has now been furloughed under the government’s Job Retention Scheme.
On 27 March, the board and senior directors in the business announced internally they had volunteered to take a 20% cut in salary for the duration of the crisis. Since then, the wider directorate in the business has also volunteered to take a salary cut of 20%.
John Tutte, executive chairman of Redrow, said: “The response from colleagues and customers during these unparalleled times has been magnificent and I am grateful for their continuing support and understanding.
“The positive progress we have made on securing additional banking facilities means we can now finalise plans for our valued workforce and supply chain, to make an orderly return to work when we are advised it is safe to do so.”
COVID-19 cases
More than 60,000 people have now tested positive for coronavirus across the UK. A total of 7,097 people confirmed to have had the virus have died.
More than 230,000 people in the UK have been tested.
