HALFORDS, which has its headquarters in Redditch, has secured £25m of additional funding as part of a loan scheme.

The car parts and tools retailer says the funding will support the business as it continues to navigate through Covid-19 and provide vital services to help keep people moving by car and bike.

The company secured the funding through a lending syndicate, in which HSBC UK and other banks participate, as part of the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

As an essential retailer, the majority of Halfords’ 800 stores and garages across the country have remained open during lockdown, giving customers access to bikes, car repairs, and other important products and services. With more stores now opening up with social distancing measures in place, this important funding will ensure the company can continue to trade confidently over the coming months.

Loraine Woodhouse, Chief Financial Officer at Halfords, said: “While our market-leading Motoring and Cycling businesses have strong macro tailwinds, this additional contingency funding gives us even greater confidence in our ability to trade our way successfully through the current uncertain environment. We would like to thank our lenders for their ongoing support.”

Akhil Shah, Relationship Director at HSBC UK, added: “Whether you’re travelling by bike or car, Halfords has played a particularly important role in keeping the country moving in recent months.

"However, like all retailers, the business has faced unprecedented challenges. As the lockdown restrictions ease and more of its stores open, this additional funding gives Halfords the confidence and the headroom to continue serving its customers effectively.”