Nisa Retail: £120m refinancing deal on the cards?

Nisa, the convenience store and wholesale group, is in talks about a £120m refinancing deal, according to reports this morning (June 1).

Sky News reported that Nisa, which has around 1,000 members operating 3,500 stores‎, is close to finalising new banking facilities with HSBC and Wells Fargo.

The new arrangements, which would replace an existing £100m deal with Barclays, would give Nisa Retail additional headroom to expand, according to Sky’s report.

It would mark a significant turnaround from two years ago, when Nick Read, the then-newly appointed CEO, inherited ‘an organisation in crisis’. Since taking the helm, Read has launched an ambitious transformation plan which includes a target of growing sales to £2bn by 2019.

Last year, it recorded a £7.3m profit on sales of £1.3bn, enabling it ‘to kick off fresh refinancing talks with lenders’, according to observers.

Nisa Retail declined to comment.

Along with the recent speculation about Palmer & Harvey, Sky’s report demonstrates just how much the proposed Tesco takeover of Booker has shaken up the grocery and wholesale markets, with most observers predicting a round of consolidations and takeovers in the next few years.

We’ll have more on this in the June issue of Wholesale News.

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