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Provan Sports secures Coronavirus Business Interruption Loan Scheme (CBILS) - 30th April 2020 - Click for larger version Provan Sports secures Coronavirus Business Interruption Loan Scheme (CBILS) - 30th April 2020

Macdonald Henderson client, Provan Sports Limited, trading as Pitch Teamwear, a sports retail and teamwear supplier based in Hillington has had success in obtaining loan funds via the Coronavirus Business Interruption Loan Scheme.

Provan Sports, a big player in the sports retail industry, with its Pitch Teamwear division providing kit for amateur football teams and its Pitch Pro Retail division providing a retail provision for professional football clubs, has seen a dramatic effect on its sales due to the coronavirus outbreak.

The effect on the business has had a ‘double blow’ with firstly the effects of the cancellation of sporting events and secondly the effects on the retail industry as a whole.

The government announced in its recent budget a £330 billion support package for businesses during the current coronavirus outbreak.

The CBILS was firstly announced to provide financial support to smaller businesses across the UK that are losing revenue and seeing their cash flow disrupted as a result of the coronavirus outbreak. This scheme has now been extended to provide support to medium and larger businesses.

The CBILS is operated via accredited lenders which gives the lender a government backed guarantee for the loan repayments to encourage more lending. The government will guarantee 80% on those bank loans.

However, it was recently reported by the British Chambers of Commerce that only 2% of UK firms have secured loans via the scheme and with reports of the scheme failing small businesses, having their applications rejected, there is a huge concern that businesses have been unable to get access to the support they need.

We were delighted last week to learn that Provan Sports has been successful in its application to its lender for the CBILS, with loan funds flowing within 72 hours of approval. Macdonald Henderson has been supporting the company on a number of assignments during the Covid-19 lockdown, including in relation to the Coronavirus Job Retention Scheme.

With the likelihood that its retail stores will be unable to open until the summer and the football season not commencing until after the summer the funds received by the company via the CBILS will give the business a much needed comfort that it needs during these troubling times.

Like every business, there will of course be a long road ahead for Provan Sports in dealing with the effects of the coronavirus outbreak but we hope this will be positive news for other businesses who are feeling rather helpless at this time.

David Provan, Managing Director commented “Our business recently applied for and received substantial CBILS funding. The process was rapid and straightforward and the bank, in this case RBS, did everything they could to ensure the cash was in our account quickly.

The funds will allow us to operate as near to normal as possible and to look after our hardworking teams in production and retail. We are grateful to all of our advisers at this challenging time for all.”

The company’s accountants - Campbell Dallas, with Alastair Woodburn taking the lead on advices, were integral in providing much need guidance on the application process for the company.

Last updated: 3.47pm, Wednesday 29th April 2020

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