Mike Ashley’s Frasers Group said it could face extra non-cash impairments of at least £200m due to “almost certain” further Covid-19 restrictions.
The company, which includes the Sports Direct and Frasers retail brands, said it had based the decision on government statements outlining Britain’s path out of lockdown restrictions.
Non-essential stores are set to re-open on April 12 as the UK as part of a plan to ease restrictions imposed on January 4 as a second wave of the virus forced a third lockdown. However, renewed surges in cases across Europe have tempered government optimism about the pace of recovery from the crisis.
“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,” Frasers said in a statement on Friday.
“We also note the Covid-19 affected experiences, estimates, and judgements from other leading retailers.”
Frasers said the impairment would be in addition to charges included in its half year results announced last December and was expected to be included in full-year results.
