£1.5million loan secures more than 150 jobs as Covid crisis impacts firm's business

The investment from HSBC UK has helped to safeguard 155 jobs at Peterlee-based IG Group.

The firm, which is one of the UK’s largest hospitality suppliers, has been supported with a £1.5million Coronavirus Business Interruption Loan (CBIL) to maintain the fixed costs of its four premises and to help cashflow after 70% of its core business was wiped out as a result of the Covid-19 pandemic.

The company supplies ‘non-food consumables’ include glassware, tableware, cutlery, napkins, disposables, plastics, paper hygiene, cleaning materials, chemicals, janitorial, kitchen utensils, and personalized products.

It is also an exclusive supplier to some of the UK’s largest pub chains.

The group also provides PPE and cleaning equipment to care homes and contract cleaners and has seen this smaller side of its business triple in size as demand for these products has grown considerably during the pandemic.

The increased demand has not been enough, however, to cover the losses made from the lack of orders from the hospitality industry with pubs, bars and restaurants closed for months.

Stephen Hoey, CEO of IG Group, revealed that the loan had been critical in keeping the firm afloat through the lockdown.

He said: “The business took a dramatic and unexpected shift when Coronavirus swept the nation and, while we’ve worked hard to meet the demand for PPE equipment and navigate the market as we source new suppliers, it’s been important we maintained our cashflow.

"HSBC UK’s support has been invaluable in allowing us to adapt, keep operating and safeguard jobs.”

Stuart McLaren, HSBC UK Relationship Director, added: “We’re committed to supporting UK businesses during this period of uncertainty, and we were delighted to be able to help IG Group to help ensure it is able to provide the nation with important PPE equipment and to ensure that it is in the best possible position to resume ‘business as usual’ when it is able to do so.”

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