Frasers Group has said it could take a hit in excess of £100 million due to the Covid-19 lockdown on non-essential retailers lasting until April 12.
Prime Minister Boris Johnson announced his road map to reopening the economy, including plans that stores – including Frasers Group’s portfolio of House of Fraser, Sports Direct, Jack Wills and Game – could welcome back customers by the spring.
However, the Mike Ashley-owned firm said the continued lockdown is likely to hit its accounts, with impairments to freehold properties, other property, plant and equipment and right of use assets.
Frasers Group said “Given the length of this current lockdown, potential systemic changes to consumer behaviour, and the risk of further restrictions in future, we believe this non-cash impairment could be in excess of £100 million.”
Back in December Frasers Group issued a rare profit warning, saying previously published guidance of a 20 per cent to 30 per cent boost in profits this year was unlikely to be achieved.