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.