Renshaw owner Real Good Food is set to pay off some of its shareholder debt after securing a new bank credit facility.
Leumi ABL Limited is providing the business with £8.87m, with around £4.5m of this set to be used to reduce the debt owed to shareholders Napier Brown, Omnicane and Downing.
Following the Leumi deal, Napier Brown will receive £1.6m, Omnicane £1.6m and Downing £1.2m.
The businesses have helped keep Real Good Food (RGF) afloat over a troubled period with a string of loans.
In May last year, RGF stated that without the funding from the shareholders “there is a significant risk the company would fail to be able to trade”.
RGF has shed many of its businesses in the past 18 months, and now comprises a Cake Decoration division made up of Renshaw and Rainbow Dust Colours, and a Food Ingredients division comprising Brighter Foods.
"We are delighted with the support we have received from Leumi in the form of the facilities, as we seek to normalise our facilities with a better balance of bank funding and shareholder support,” said RGF CEO Hugh Cawley.
“The bank’s support underpins the work the board has undertaken in streamlining the business units of RGF in order to drive the group towards consolidated profitability.
"I would also like to thank our major shareholders for the financing they have provided over the past few years to ensure the financial survival of the group as we have worked to turn RGF around."
RGF recently announced its annual results, and revealed plans to shake up its cake decorations range as part of the development of its new streamlined business structure.
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