Greggs secures £150m from Government COVID-19 fund

High street giant, Greggs has secured £150m from the Treasury and the Bank of England’s emergency coronavirus fund after closing stores.

The bakery chain, which has £47m in the bank, said it believes it now has enough credit available to keep it afloat in a scenario where its shops are forced to stay shut for the rest of the year.

The group stated that the funding from the Covid Corporate Financing Facility (CCFF) scheme is sufficient for its current liquidity needs, although it is understood that the company may be able to withdraw more funds.

The company, which has around 2,050 sites nationwide, estimated that it will face a £3.5m hit each week until the end of June, while its stores are shut for a prolonged period. The firm expects this to rise to around £4.5m each month from July, including property rental costs, if the closures continue.

Greggs has also scrapped its latest dividend payout, while its chief executive Roger Whiteside has agreed to a 20% pay cut.

Most of the company's 24,900 staff are on furlough, with the Government covering 80% of their wages.