Fuller’s has approved the issue of commercial paper under the Covid Corporate Financing Facility (CCFF) for an initial loan of £100m.

In March, the group said it was in a strong financial position, with significant liquidity headroom, to weather the closure period. But due to lack of clarity on when pubs will be allowed to reopen, it has decided to take additional financial measures.

In addition to the CCFF loan, which will enable the business to leave the majority of its £155m revolving credit facilities undrawn, the group has made a series of amendments to its banking agreements.

The company’s quarterly covenant tests through to and including the September 2020 test, will primarily focus on liquidity headroom metrics, which the business says is a more “appropriate measure” while its pubs and hotels remain closed.

In a statement published to the London Stock Exchange, the company said: “This, together with the action outlined above relating to the additional liquidity reserves being put in place, further underpins the Board’s confidence that Fuller’s has sufficient liquidity headroom to sustain the Company through this period of continued uncertainty.”

“This action comes on top of existing cost reducing initiatives including placing 96% of our workforce in furlough, a voluntary pay reduction by Exec and Board members, minimising outgoings across the business, suspending all non-essential capital spend and negotiating across our supplier base to reduce costs further.”