Bank support helps North East manufacturer secure jobs during covid-19 crisis
A sports clothing manufacturer has been able to safeguard jobs during the coronavirus crisis and prepare for its post-lockdown future, thanks to new financial support from Lloyds Bank.
Northern Clothing Company in North Shields manufactures sports clothing for sports teams, clubs and schools across the UK under its own brand – Core-37. The brand’s website allows customers to design and buy their own bespoke kit online.
As a business heavily reliant on orders direct from the sports industry, Northern Clothing Company was hit hard by the coronavirus shutdown. The cancellation of events and closure of clubs left the firm facing major cashflow issues, forcing its management team to pause manufacturing operations and furlough 35 members of staff.
Turning to longstanding banking partner, Lloyds Bank, director Paul Varley was able to secure a £135,000 loan through the Coronavirus Business Interruption Loan Scheme (CBILS) – arranged fee-free and turned around in just seven days.
The funding will be used to pay wages, cover business overheads and settle outstanding supplier invoices. The loan will also bolster the firm’s working capital position, putting it in a position to recommence operations with speed once restrictions are lifted.
Paul Varley, director at Northern Clothing Company, said: “The majority of our customers operate in the sports industry so when the lockdown was announced, the impact on income was almost immediate.
“This new funding has not only allowed us to safeguard jobs, but it’s given us the ability to put a plan in place for when demand returns, and our manufacturing processes can resume.
“Core-37 produces sports kits in just three weeks, offering some of the lowest prices in the market, so we expect a surge in activity once schools and clubs reopen and team sports begin again. This money has allowed us to bring back some of our sales team who are starting to have conversations with customers about their needs in a post-lockdown world so we can produce their orders in time for the start of the season.”
“It’s been hugely reassuring to know that we have Lloyds Bank by our side in such challenging times.”
Paul Watson, relationship manager at Lloyds Banking Group, said: “Coronavirus is causing a great deal of disruption to many businesses across the North East.
“We’re committed to supporting businesses in all sectors adapt and adjust to these unprecedented circumstances, ensuring they’re in the best possible position to hit the ground running once we emerge on the other side of this pandemic.”
