Burberry repays Bank of England loan after a sales bounce-back in China
Boost: Burberry’s online sales in China grew by a ‘triple digit’ percentage in the third quarter
Burberry has repaid its Bank of England loan after a sales bounce-back in China.
The luxury fashion brand borrowed £300m through the Covid corporate financing facility (CCFF). It is also set to hand back £7m received in business rates relief, a spokesman confirmed.
The company’s decision comes after an economic recovery from the pandemic in China that has lifted consumer spending.
It said online sales in China grew by a ‘triple digit’ percentage in the third quarter, covering the 13 weeks to Boxing Day, part of a 50 per cent global rise.
But shop sales fell by 9 per cent.
A Burberry spokesman said the firm had repaid the cash a month early.
He added: ‘We believe this is the right thing to do in the context of our improved third-quarter trading performance and financial stability, secured through rigorous cash management and the introduction of long-term funding via our sustainability bond.’