Schuh secures £40m to expand

SCOTTISH fashion footwear retailer Schuh has secured a £40 million refinancing package from Lloyds Banking Group that will support investment across the group.

The new facility enables Livingston-based Schuh to fund the exit of two recently retired shareholders, Tom Lynch and Lyn Ferguson, who were part of a management buyout in 2004.

The deal also allows the business to extend its shareholder base, placing more equity ownership with senior management.

Managing director Colin Temple and finance director Mark Crutchley jointly own 75 per cent of the business while the remaining 25 per cent will be held by other employees.

In 2008 the company raised 36 million to fund expansion.

Schuh has 59 stores in the UK and Ireland and wants to invest in four store openings next year and refurbishment of existing stores. It will also invest in its internet offering and expansion of its head office and central warehousing and distribution facility.

Simon Sweeney, the director for Lloyds Banking Group Corporate Markets that led the transaction, said: "This deal marks a new phase in the company's evolution.

"The business has consistently outperformed its budgets, growing both turnover and profitability during the economic downturn."