Real Good Food (RGF) has extended the repayment deadline for funding that it said had enabled it to continue trading following a financial crisis.
In May last year, the company secured £8.2m funding from three major shareholders – Napier Brown Ingredients, Omnicane International Investors, and funds managed by Downing LLP. These were due to be repaid by 30 June next year.
The loans followed a troubled period for Real Good Food that included profit warnings, a shake-up of its board and an overhaul of its corporate governance procedures.
At the time, the company said that, without this funding, “the directors believe there is a significant risk that the company would fail to be able to trade”.
Since then, RGF has sold Haydens Bakery to Bakkavor Group, and R&W Scott and Chantilly Patisserie to its management teams. In May this year, it was fined £450,000 for breaking Alternative Investment market rules at the time of its financial difficulties.
Under the new arrangements, RGF will have until 17 May 2021 to make its final repayments on the loans.
“The board considers that, by extending the final repayment date of the agreements, it substantially alleviates the pressure on the company to source funding,” it stated.
RGF still owns cake decorations supplier Renshaw and snack bar manufacturer Brighter Foods.
Bakery industry veteran Steve Moon has recently been appointed chief executive of Renshaw.