Cavalier warns of breaching bank covenants if poor trading repeatedSUPPLIED Cavalier has been repositioning its Bremworth brand. Carpet maker Cavalier says a repeat of the past year's poor performance raised the risk it might breach banking covenants,. Cavalier was hit by a "dramatic drop" in wool prices, caused by reduced demand from China. It affected wool buying subsidiary Elco Direct as farmers and traders held onto wool in the hope prices would rise. Cavalier's woollen felted production, initially manufactured in Christchurch, was struggling to meet increasing demand particularly from the Australian market.

Source: Stuff August 23, 2017 04:52 UTC