Swiss-Irish baker Aryzta has secured a "precautionary amendment" to its financial covenants and outlined a number of steps taken to maximise cash and reduce costs.
The new covenants agreement, which is expected to be executed shortly, will give the company more room to deal with the impact of the coronavirus outbreak on the business.
In a statement, Aryzta outlined measures it has taken in light of the Covid-19 crisis. These include pausing production at five bakeries in the United States and three in Europe; temporarily closing additional production lines; furloughing about 30 per cent of staff; and suspending future capital investment.
The company also said it had improved its liquidity position to in excess of €385 million at the end of April, compared with €360 million a month earlier.
Aryzta’s executive management committee has taken a 30 per cent pay cut for three months, while the wider leadership team has accepted a 15 per cent reduction. Members of the board of directors have also take a 30 per cent cut in their fees.
The company, which owns the Cuisine de France brand, will report its third-quarter revenues on May 26th.
Shares in the company were down 2.7 per cent in early trading but regained ground as the day went on.
