Costcutter has struck a new refinancing deal with Barclays Bank

Costcutter has signed a £35m refinancing deal with Barclays.

The deal, which will run over a three-year term, will support business growth and the retailer’s joint venture with wholesaler Palmer & Harvey, announced earlier this year.

“Having the support of Barclays for the next three years as the business manages the current period of transition and embarks upon its growth strategy is very positive,” said Costcutter financial director Bob Marshall.

“In Barclays, we believe we have the ideal partner for supporting the business investments we need to make.”

Barclays key client director Ben Andrews added: “Costcutter has proven resilient through the cycle and Barclays’ support has been very much based on our belief in the quality of the management team and the consistent performance of the business.

“As a north east-headquartered business with a national footprint, Costcutter Supermarkets Group is a key name in our region and we look forward to developing the relationship further and supporting the company’s growth in the years ahead.”

Costcutter announced in March it had signed an eight-year wholesale distribution contract with P&H. As part of the strategic partnership, Costcutter will take over the management of P&H’s 800 Mace, Your Store and Supershop stores.