Frasers Group warns of £200 million hit due to impact of Covid lockdowns
Frasers Group has warned that it could be hit by £200 million worth of costs from the Covid-19 pandemic due to fears of a third wave.
This is double the amount it predicted back in February.
In a statement to the London Stock Exchange, the owner of Sports Direct, Flannels and House of Fraser said the impact of the Covid crisis was expected to lead to £100 million non-cash writedown in the value of the company’s property and other assets.
It added: “Frasers Group is continuing to assess the Covid-19 potential impact on asset values. 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.”
