Housebuilder says 80% of staff now stood down as it secures 拢300m government-backed loan

Redrow has put more than 1,800 staff in furlough, equivalent to 80% of its workforce, the firm said today.

The housebuilder made the admission alongside announcing it has secured a 拢300m government-backed loan to help it through the coronavirus crisis.

redrow 2

Source: Shutterstock

Redrow鈥檚 sites, such as this one in West Sussex, have now been shut down for two weeks

The firm, which but did not specify how many, today said that 鈥渃urrently around 80% of the workforce has been furloughed under the Government鈥檚 Job Retention Scheme鈥�.

The firm said in last year鈥檚 annual report that it employed 2,304 people, meaning the move will see around 1,850 staff put in furlough, where they are unable to work but the government pays 80% of their wages.

Redrow has not said whether it is topping up the wages of furloughed staff to ensure they do not see a 20% drop in income.

But the move will slash the firm鈥檚 拢109m wage bill, with the board, senior directors and 鈥渨ider directorate鈥� all taking a 20% pay cut for the duration of the crisis.

Redrow said it had successfully secured a 拢300m loan under the Bank of England Covid Corporate Financing Facility, designed to allow firms with investment-grade credit ratings to borrow cheaply to offset business impacts of the crisis.

Redrow said it had not yet drawn down the loan and was in negotiations to secure an additional 拢100m of financial headroom from its existing lenders, taking its commercial credit facility to 拢350m. It said it expected these to be wrapped up by the end of the month.

Redrow reported having 拢124m in net cash at the end of its last financial year in June 2019.

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