Costcutter Supermarkets Group has signed a £35m refinancing deal with Barclays.
The group says the three-year term of the refinancing will support both business growth and the current transition period following the announcement in March that Costcutter Supermarkets Group has entered a strategic partnership with Palmer and Harvey for buy and supply.
This has seen the two companies launch a joint venture buying company, bring the 800 Mace, Your Store and Supershop stores into Costcutter Supermarkets Group, and sign an eight-year wholesale distribution contract for Palmer and Harvey to supply the group.
Bob Marshall, financial director of Costcutter Supermarkets Group, said: “Having the support of Barclays for the next three years as the business manages the current period of transition and embarks on its growth strategy is very positive. In Barclays, we believe we have the ideal partner for supporting the business investments we need to make.”
Ben Andrews, key client director at Barclays, said: “Costcutter Supermarkets Group has proven resilient through the cycle and Barclays support has been based on our belief in the quality of the management team and the consistent performance of the business.
“As a north-east headquartered business with a national footprint, Costcutter Supermarkets Group is a key name in our region and we look forward to developing the relationship further and supporting the company’s growth in the years ahead.”