(Adds details from statement, background)
March 20 (Reuters) - British chocolatier Hotel Chocolat
said on Friday it had agreed an issue of new shares
that would inject 20 million pound into the business, as it
faces having to close its cafe and store locations due to
Britain's coronavirus lockdown.
The luxury chocolate maker, retailer and wholesaler said it
would issue just under 8.9 million new shares at 225 pence a
share, a discount from Thursday's last close of 232 pence.
Co-founders Angus Thirlwell and Peter Harris would buy
roughly 10% each of the new shares, the statement said.
While companies have been drawing down cash from existing
financing arrangements as the extent of the coronavirus crisis
became clear in the past fortnight, few have secured fresh
investment as banks and investors await more stable market
conditions before making decisions on risk and pricing.
High Street retailer Laura Ashley announced plans to
call in administrators this week due to the outbreak's impact on
its performance and its inability to secure more backing.
Hotel Chocolat said the year had started off well with a 6%
rise in revenue last month, but that it now expects to close
stores while customers isolate at home.
"The Company's trading in March-to-date has inevitably
slowed as the outbreak of COVID-19 has impacted footfall both in
the UK and internationally with Group retail revenue having
decreased by 5% year-on-year in March-to-date," the UK-listed
company said.
UK Mother's Day on March 22 and the Easter holiday, when
Britons spend heavily on chocolate easter eggs, typically make
up around 12% of the company's overall annual revenue.
(Reporting by Muvija M in Bengaluru; editing by Patrick Graham)
