Fogarty secures £9.5m cash injection
Lincolnshire-based duvet and pillow supplier Fogarty has received a finance boost worth £9.5m from GE Capital.
Fogarty, based in Boston, Lincolnshire, has secured a £9.5m financing facility. The funding package will comprise of invoice discounting, trade finance, inventory and plant & machinery finance. It was designed to support the company's growth plans and provide additional working capital, said GE Capital.
The company said its plans to complete a turnaround of the business in 2011 were made difficult by raising commodity prices, which resulted in an increased need for working capital for the business.
The funding will help to protect the jobs of 284 people employed by Fogarty at its Boston site.
Barry Lee, regional director of GE Capital, said: "Access to working capital can be an important issue for UK manufacturers as they look to grow and thrive in an increasingly inflationary environment. Having the right financial support in place can address those issues.
"By working closely with the Fogarty management team we were able to deliver a solution which will help to support the ongoing growth of the business and we look forward to a successful relationship with the Fogarty Team."
KPMG Nottingham acted as adviser to the management team at Fogarty. Legal advice was provided to Fogarty’s management team by Browne Jacobson in Nottingham.
