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Naked Wines confirms 'robust' liquidity position in the aftermath SVB collapse

Published: 07:33 13 Mar 2023 GMT

Naked Wines PLC -

Naked Wines PLC (AIM:WINE, OTCQX:NWINF) said no loss is expected from the failure of Silicon Valley Bank (SVB), while its liquidity position remains "robust".

The company said it has £32mln of gross cash, £17mln of which is immediately available.

It confirmed that it held cash with SVB, which is also the administrative agent for a £50mln (US$60mln) asset-backed credit facility.

However, by its own calculations, less than £0.6mln is considered to be potentially at risk from the collapse of the lender.

A total of £14mln held in a cash sweep account should be returned to the wine retailer under the terms of its contract. A further £17mln is deposited with "multiple" other banks.

Chief executive Nick Devlin said: "We are announcing today that day-to-day operations are unaffected and we don't expect to incur any loss as a result.

“Whilst this situation remains fluid, we maintain a robust balance sheet with approximately £185mln of stock and £17mln of immediately accessible cash.

“We remain focussed on delivering for our customers and winemakers and continuing to execute against the pivot to profit strategy announced in October."

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