Frasers Group predicts £100m lockdown loss

Mike Ashley’s Frasers Group, the owner of House of Fraser and Sports Direct, has said that it expects a loss of £100 million as a result of coronavirus restrictions.

In response to prime minister Boris Johnson’s announcement on the reopening of non-essential retail stores from 12 April, the company said that it anticipates making material accounting impairments to freehold properties, other Property, plant & equipment, and right of use Assets.

In December 2020 the group has said it could no longer commit to achieving 20 to 30 per cent profit improvement after a lockdown for the south of England was announced.

“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 £100m,” said the company. “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.”

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