Bolton pushchair manufacturer secures funding to protect future
A Bolton-based designer and manufacturer of pushchairs, highchairs and car seats has received a six-figure loan from HSBC UK through the Coronavirus Business Interruption Loan Scheme (CBILS) to support the future of the firm after being heavily impacted by Covid-19.
Cosatto, established over 30 years ago, designs, manufactures and sells award winning baby travel systems such as the Giggle range, car safety seats such as the All In All Rotate and the Noodle 0+ highchair. Due to lockdown restrictions, the business has experienced a serious decline in demand as the majority of its partner retailers are closed.
The funding will allow Cosatto to continue to trade with a new temporary focus on selling directly to customers via its own website, as well as growing its exports to a growing customer base in the Far East. Once its retail partners are able to reopen again, it will now be able to operate in a financially stable position.
HSBC UK’s funding will also enable the company to retain jobs with 36 of the business’ 48 staff initially being furloughed on the Government’s scheme. Since then the company are now bringing employees back to work and it expects that in early June the whole workforce will have returned to business as usual.
Andrew Kluge, CEO of Cosatto, said: “We had a very busy year ahead of us, however, following the lockdown restrictions and the closure of our key retail partners, our orders significantly decreased and we had to take decisive measures to ultimately save the long-term future of the business and protect our team’s livelihoods. The funding from HSBC UK has allowed us to diversify our business to specifically focus on selling directly to customers via our online website.
“We’ve banked with HSBC for 12 years and they worked quickly to ensure that significant and necessary funding was secured. The retail industry looks uncertain now, but the funding is allowing us to position ourselves well for when we come out of this crisis.”
Zubayr Atcha, Corporate Relationship Director, HSBC UK, added: “Over 30 years of experience has enabled Cosatto to establish itself as one of the most well-known and respected names in the baby retail industry. So, we have full confidence in Andrew and his team, despite these unprecedented times. Furthermore, we look forward to seeing the business not only recover from this difficult period but continue to grow.”
HSBC UK is working closely with the Government and UK Finance to identify emerging issues and make sure customers and businesses have the advice and support they need. For tips and advice for businesses around planning for any possible disruption, visit www.business.hsbc.com/novel-coronavirus.
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