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COVID-19: Mike Ashley’s Frasers will book £ 100m bill as the blockade is dragged | Business News

Fraser’s Group, a retailer managed by Mike Ashley and formerly known as Sports Direct, expects to book a £ 100m bill as a result of continued blockades of the coronavirus that closed stores. It states that it is.

The company told investors on Tuesday that non-cash costs would explain the loss of value of assets, including assets, during the current period. COVID-19 (new coronavirus infection) (# If there is no character limit, add parentheses when it first appears Blockade of the entire UK.

The store, including Sports Direct and the House of Fraser, is considered a non-essential retail store and is expected to remain closed under Prime Minister Boris Johnson until April 12 at the earliest. Roadmap from blockade It was revealed on Monday.

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Mike Ashley is Fraser’s Chief Executive Officer and Controlling Shareholder.

Like many of its competitors, Fraser relies on high streets to trade online as reels due to the effects of restrictions that helped explain that they have lost two celebrities and thousands of jobs in recent months. I keep doing it.

Sir Philip Green’s Arcadia and Debenhams, including Topshop, disappear from the city center in the wake of the pre-Christmas collapse.

Debenhams, along with the Arcadia brand, was snapped up this year and shared among established online players ASOS And Boohoo Who trades them only online.

Fraser said of the looming charges: “Given the length of this current blockade, the potential systematic changes in consumer behavior, and the risk of further restrictions in the future, we believe this non-cash impairment could exceed £ 100m. “

Fraser shares were down 6.5% compared to last year, but increased 4% in early trading.

Laura Hui, a equity analyst at Hargreaves Landsdown, said of the latest information: “It’s easy to forget that after the government announced plans to lift the blockade, the spirit of the country has risen and not everyone is celebrating.

“While Frasers’s Frasers Direct business has overcome the blockage relatively well, other high-street names in groups like the House of Fraser and Jack Wills lack demand for occasional clothing and workwear. Was hurt by.

“Fraser is concerned about” systematic changes in consumer behavior, “and of course.

“Social gatherings, and even regular working days, can look very different after a year or more of turmoil. Of course, consumers are increasingly preferring e-commerce to high street shops.

“Fraser isn’t facing a lack of funding for the foreseeable future, but in the short term it will have a hard time doing more than it’s floating. Fraser’s warning could be a signpost for the entire sector. Highly probable. “”

COVID-19: Mike Ashley’s Frasers will book £ 100m bill as the blockade is dragged | Business News

Source link COVID-19: Mike Ashley’s Frasers will book £ 100m bill as the blockade is dragged | Business News

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