It said on Monday the additional debt facility with its existing lending banks would supplement its current facility of 250 million pounds and cover the near-term working capital unwind until sofa deliveries can resume.

Its shares were up 3.4% at 0710 GMT, paring losses for the year to 51% and valuing the business at 286 million pounds.

DFS has also made progress reducing operating costs following talks with suppliers and landlords and support from the government.

As a result its mitigated operating cash outflow is expected to be less than 14 million pounds per month until its showrooms, manufacturing and distribution operations re-open. They have been closed since March 24 in line with the national lockdown.

DFS's websites have, however, remained operational, with online gross sales up by 20.2% over the period from March 25 to April 17, growing the group's orders to 192 million pounds.

The DFS and Sofology trading units are receiving deliveries of customer orders from Far East manufacturers, and Dwell is dispatching parcels from its accessories warehouse.

The group intends to restart sofa deliveries once it finds a safe and workable approach for two-person installations into customer homes.

"The board is confident that the group can navigate the COVID-19 crisis and deliver its strategy over the longer term when the trading environment normalises," the group added.

(Reporting by James Davey; editing by Kate Holton and Alistair Smout)