Ticket specialist Attraction World has secured "seven-figure" government-backed funding to help the business rebound following the coronavirus crisis, but has confirmed it will likely have to make "some redundancies" as a result of the downturn.
After identifying the funding it required to "bridge" the winter low-season and build on "strong demand for 2021", the business has successfully tapped the government’s Coronavirus Business Interruption Loan Scheme (CBILS).
The scheme is designed to help small to medium-sized businesses to access loans and other finance worth up to £5 million to guard against the effects of Covid-19; 80% of the finance to the lender is guaranteed by the government, which also pays interest and any fees for the first 12 months.
"Many companies in the travel and leisure sectors have experienced a significant negative impact on business due to the Covid-19 pandemic, and it is no different at Attraction World," said the business in a statement provided to TTG.
Funding will come from long-term baking partner Barclays, which was able to assess Attraction World’s funding need through "its understanding of Attraction World’s business model and cash flow cycle". The cash will be available for Attraction World to draw down over the coming months, "if required".
"Attraction World is exactly the sort of business the CBILS scheme was designed for," said chief executive Paul Stobbs, who led a management buyout of the firm back in February. "[It is] a robust business model, but in an industry which has been heavily impacted by the pandemic."