Mosaic Brands has agreed to a $59 million credit facility with Commonwealth Bank, more than doubling its existing arrangements with the bank.
In a trading update released ahead of its Annual General Meeting (AGM), Chairman Richard Facioni said the funds will help the business emerge strongly from a difficult trading period.
"Having completed a $32 million capital raise in October, the Group today announces it has a credit approved term sheet for $59 million of funds with the Commonwealth Bank, which will more than double our existing arrangements.
"This strengthening of our balance sheet is the final piece in our reset of the Group which has seen us navigate our toughest ever trading period while focusing on delivering a strong post-lockdown rebound in profitability.
"With customers returning in-store and online continuing its strong growth, Management and the Board expects a strong second all in FY22," he said.
Other highlights from the trading update include online sales for FY22 up 25% in the year-to-date and Ezibuy's online sales up 19% YTD.
Additionally, Mosaic's comparable store sales are returning to positive, with the Group at -6.6% YTD in October, up from the -10% announced in September.
The business is also set to take advantage of the rebound in consumer sentiment ahead of Christmas, with 90.87% of its demographic fully vaccinated.
"Although the first four months were exceptionally challenging due to the significant store closures we incurred and the impact this had on customer sentiment, post opening, the Group has regained positive momentum as customers return from hibernation," Mosaic Brands CEO Scott Evans commented.
"Although this momentum will not offset the losses incurred from COVID lockdowns which impacted up to 65% of our stores, the Group expects a positive EBITDA for the first half.
"However if we continue to trade unimpeded, we expect that EBITDA growth will accelerate for the second half, driven by the changes we've made across the Group to adapt to a post-COVID retail environment," he said.
Mosaic Brands' AGM took place on November 17.