Halliwells is “reorganising its borrowings” following its move into new headquarters in Manchester.
In response to enquiries concerning the firm’s financial situation, a Halliwells spokesperson said: “The firm had always intended to reorganise its financial structure once all aspects of the move to Spinningfields [the Manchester headquarters] had been completed.
However, the firm refused to clarify what it is doing to reorganise its finances. A Halliwells spokesperson said that the firm had not made a cash call, nor had it increased its debt obligations.
“We are not raising any additional cash because we don’t need to do so but we are reorganising our borrowings to ensure that our long term investments are being appropriately funded,” the spokesperson added.
“Halliwells has for some years been capitalised at a far lower level than its competitors and this reorganisation brings the firm more into line with its peer group.”
Halliwells moved into a single site in central Manchester, which it took possession of last April, at the end of 2007. It is understood that the firm is paying in the region of £35 per square foot for the building.
Turnover at Halliwells was £87m for 2007/8, while net profit fell by 7.5 per cent, with average PEP coming in at £400,000. The firm was one of the first to make redundancies this year, with 12 losing their jobs in March, while a further 40 members of the real estate department are currently in consultation.
The spokesperson commented: “While the credit crunch is clearly having a negative impact on some aspects of Halliwells’ business, other parts are performing extremely well and the firm is ahead of budget for the year to date.”