Attraction World has secured a seven-figure government loan to help it through the coming months but said some redundancies were inevitable.
The attraction tickets specialist applied for funding under the Coronavirus Business Interruption Loan Scheme (CBILS) with the help of financial advice specialist Cattaneo Corporate Finance.
The company, based in Kings Norton, said it had performed a full strategic business review as a result the impact of the Covid-19 pandemic and taken “all necessary steps” to ensure the business was well placed to take advantage of future opportunities.
The company said it was now confident it would be able to retain most employees within the business but admitted “some redundancies will unfortunately be inevitable as the company seeks to deal with a reduction in demand throughout the remainder of 2020.”
The business said it had faced “numerous ticket cancellations” for 2020 as a result of the Covid-19 pandemic but also experienced “record bookings” for 2021, demonstrating there was demand for when travel restrictions are eased.
The company decided to apply for a loan to “bridge the gap” as it heads towards the winter low season, ahead of strong demand expected for 2021.
The company approached Barclays, which made a detailed assessment of funding needed and was able to provide the requested debt facility.
Attraction World chief executive Paul Stobbs said: “Many companies in the travel and leisure sectors have experienced a significant negative impact on the business due to the Covid-19 pandemic, and it is no different at Attraction World.
“We are pleased to have secured the CBILS funding from Barclays. Attraction World is exactly the sort of business the CBILS scheme was designed for; a robust business model but in an industry which has been heavily impacted by the pandemic and so requires additional headroom to trade through this period of uncertainty. We are grateful for the advice received from Cattaneo and for the support from Barclays.”
Cattaneo said it had been successfully advising clients on CBILS since the scheme was launched and had a good understanding of the criteria and the process involved. “This allowed us to advise Attraction World, a strong and well-run business, in ensuring they presented the necessary information in their initial submission, thus allowing for a smooth process,” said Scott Peters, associate director at Cattaneo.
Andy Mayne, relationship director, Barclays, added: “The team at Attraction World has worked hard in navigating coronavirus by making decisions which protect the business without compromising its ability to continue to flourish post-pandemic.”
Legal advice on the loan was provided to Attraction World by law firm Browne Jacobson.