Frasers Group expects to book £100m charge due to lockdown
Sports Direct owner Frasers Group has said it expects to book a £100 million charge due to Covid-19 restrictions continuing to prevent its stores from reopening.
The announcement made to the Stock Exchange follows news that non-essential retailers will have to wait until 12 April at the earliest to reopen their shops.
In the statement, Frasers Group said the group expects to make material accounting impairments to freehold properties, other property, plant and equipment and right of use assets.
It added: “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.
“Any such impairment would be in addition to impairments included in the half year results announced on 10 December 2020 and is expected to be included, subject to audit, with the company’s results for the financial year ending April 2021.”
Frasers Group’s retail brands include Sports Direct, Flannels, Evans Cycles, Jack Wills, Game, USC and House of Fraser.
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