Penneys owner to take €410m sales hit from latest Covid closures

business
Primark in Birmingham, England. Photo: PA Wire/PA Images
Share this article

By Henry Saker-Clark, PA City Reporter

The owner of Penneys has said it will take a €410 million hit from the loss of sales amid the latest enforced closures in the face of Covid-19.

Associated British Foods said around 57 per cent of selling space in its stores will be temporarily closed if the British government approves plans to shut non-essential shops for a month from Thursday, November 5th.

On Saturday, British prime minister Boris Johnson confirmed that clothing stores will be among those required to close until December 2nd as part of the second lockdown aimed at curbing the spread of the virus.

ABF said all Penneys stores in Ireland and Primark stores in France, Belgium, Wales, Catalonia in Spain and Slovenia are already temporarily closed, representing 19 per cent of selling space.

It also told investors that its trading hours have been restricted in a number of other key markets.

Advertisement

“Uncertainty about further temporary store closures in the short term remains,” it added, in a statement to the London Stock Exchange.

The retail giant said it is implementing operational plans which have been developed to “manage the consequences of closures” and is taking action to reduce its operating costs.

It also told shareholders that all orders placed with suppliers will be honoured.

Business
Penneys' owner beats sales expectations after stor...
Read More

The group added that, as of the end of its financial year on September 12th, it had £1.5 billion (€1.6 billion) in cash reserves, with a total liquidity of around £3.1 billion including lending facilities.

In September, ABF said a surge in summer sales had put it on track to top its profit targets for the year.

On Tuesday, ABF, which also runs a raft of grocery and ingredients businesses, will reveal its annual results for the financial year.

Read More

Want us to email you top stories each lunch time?

Download our Apps
© BreakingNews.ie 2021, developed by Square1 and powered by PublisherPlus.com