_630_630.png)
:quality(70):focal(-5x-5:5x5)/cloudfront-ap-southeast-2.images.arcpublishing.com/tvnz/E44ZU6DYJBCK3NN2JTCEARMGDY.jpg)
By Anthony O. Goriainoff
Studio Retail Group PLC said on Monday its board was exploring a range of options to meet its increased working capital needs.
The London-listed online retailer said higher stock levels and larger than usual stock commitments have led to an increase in its working capital requirements, and that discussing the current level of its funds facilities working with its UK lenders is among its options. .
The company said it has identified a higher than usual level of good quality inventory due to supply chain challenges and higher shipping costs, and market demand is expected to improve. weaken early in the fourth quarter with higher inventory levels.
“This is further compounded by current and future season inventory commitments that need to be completed earlier than normal due to continued jitters in supply chains,” the company said.
Studio Retail said it expects supply chain disruptions to continue into 2022 and further inflationary pressures will cause it to take a tougher approach to operating costs over the course of the year. fiscal year 2023.
The company said it was also considering other controllable actions to boost its short-term liquidity and currently has a revolving credit facility of 50 million pounds ($67 million).
Write to Anthony O. Goriainoff at [email protected]
