(Alliance News) - Electra Private Equity PLC on Wednesday said it has taken Covid-19 measures in order to strengthen its portfolio businesses.
Electra, whose biggest investments lie in the retail and hospitality sectors took significant hits during the Covid-19 pandemic. The negative impact of Covid-19 on valuation as of March 31 was estimated at GBP62 million.
The private equity investment trust relied heavily on UK government furlough schemes, hospitality industry VAT rate reductions and the 'Dine out to help out' scheme.
Electra announced that its portfolio company Hotter Shoes' company voluntary agreement was approved by 99.5% of creditors who voted.
"The CVA was a regrettable but necessary step to avoid the likelihood of Hotter going into administration causing a much larger number of job losses, and was critical to ensure a viable future for the business," said Chief Executive Ian Watson.
After the CVA process Elestra said it plans to capitalise on growing customer confidence in e-commerce up by 35% year-on-year, through its relaunched website in June and its targeted sales channel structure.
The London-based company said the phased re-opening of TGI Friday stores has exceeded trading exceptions and will have 80 out of 85 restaurants fully-open by the end of next week.
Fridays' said it remains optimistic as competitors are due to re-open, focussing heavily on satisfying customer reviews and following the success of a 'click and collect' service, will launch more "brand and channel developments" in the following quarter.
Meanwhile, Sentinel Performance Solutions another large portfolio business of Electra reported it was well positioned to with-stand effects of Covid-19, yet, earnings remain low for the season.
Electra shares were down 1.2% at 199.54 pence each on Wednesday afternoon in London.
By Neetika Kurup; neetikakurup@alliancenews.com
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