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Mike Ashley’s Frasers Group has warned that it expects to take a hit in excess of £200m due to the impact of Covid-19 – double what the retailer predicted in February.
The group, which owns Sports Direct and House of Frasers, has said that further Covid-19 restrictions are “almost certain”.
Furthermore, the retail group anticipates making material accounting non-cash impairments to freehold properties, other property, plant and equipment, and IFRS 16 Right of Use Assets.
It comes as non-essential retailers, including those in the Frasers portfolio, are set to reopen their doors to customers on Monday 12 April.
However, in a statement to the stock exchange the group said: “In our ongoing assessment we note the continuing government and government advisor pronouncements regarding ‘third waves’ and normality being ‘some way off’, meaning further restrictions are in our view almost certain.”
Most of the stores controlled by Frasers Group remained closed this year due to ongoing restrictions which disrupted retail trade.
Only Evans Cycles, which is reportedly looking to axe more than 300 roles across the business, remained open due to its ‘essential’ status.
