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Woolworths may give its Australian businesses up to R1,1 billion in funding support to survive the impact of Covid-19, after its Country Road stores were forced to close during that country’s lockdown, while David Jones suffered from lower numbers of people coming to shop.
The clothing and food retailer said in a trading update yesterday it is looking at providing about R871 million of funding support to its Australian businesses but has also made provision to further “in-principle support” of R290 million should they need it.
“A review of the capital structure of the Australasian entities has been initiated and will include the restructuring of its borrowings to ensure a more sustainable funding structure.
“UBS Australia has been appointed to support this process and will conduct a full review of options relating to the Australasian property portfolio,” said Woolworths in a statement.
Woolworths has been struggling with the Australian operations even before Covid-19. —Fin24.com
Online Reporter