Liverpool- based Work Wear North is set for growth after securing a factoring facility
A Liverpool-based work wear clothing supplier is set to open new branches and launch an online shop, after securing a factoring facility from Lloyds TSB Commercial Finance.
Worker Wear North stocks a wide range of outdoor garments, high visibility clothing and safety footwear, as well as PPE and corporate clothing to various sectors including construction, healthcare, business and hospitality.
The business supplies big name brands such as Dickies, Caterpillar and Helly Hansen and holds contracts with large organisations in the North West, including Sefton Council, Electricity North West (previously United Utilities) and Liverpool Housing Trust.
Worker Wear North was established in December 2008 and the team operate from a retail unit in Litherland.
In order to build up stock levels and capitalise on increasing demand, the firm approached Lloyds TSB Commercial Finance via the funder’s website. Lloyds TSB Commercial Finance provided a £50,000 factoring facility which releases the value of the firm’s sales ledger and bridges the gap before invoices are settled.
As a result of the funding and success, the business now plans to roll out its expansion strategy; including 2 more Worker Wear North branches down the M62 corridor and hopes to open a shop in Manchester in the next two years.
Customers from Merseyside currently account for 60 per cent of the company’s business, so a new online store is also in the process of being launched to increase its customer base nationally.
The firm also took out Lloyds TSB Commercial Finance’s Debtor Insurance policy to safeguard against the risk of bad debt caused by unpaid invoices and potential customer insolvency.
Chris Brown, one half of the owning partnership at Worker Wear North, said: “Despite business slowing down during the recession, by adding value to our output we were able to capitalise on changing demands. Marketing and brand awareness moved up our customer’s agendas, which meant that the demand for our in-house embroidery service increased as a cost effective way to promote corporate identity.
“The factoring facility has allowed us to develop our account portfolio and progress with our expansion plans with an improved cash flow.”
Tariq Bourdouane, regional manager at Lloyds TSB Commercial Finance, said: “Although the retail industry suffered during the economic downturn, it is still worth £12 billion per annum, and Worker Wear North has successfully targeted the safety work wear industry, which remained relatively strong throughout.
“For the right retailers, now is a time of great opportunity and this is a great example of how, through proper planning and support, an established business can drive expansion at any stage of the economic cycle.”
September 2010