Coronavirus: Frasers Group the latest to seek rent holiday amid profit warning

2726
Frasers Group covid-19 profit warning Mike Ashley
Frasers Group said it would not achieve its previous profit guidance as a result of coronavirus-linked uncertainty
// Frasers Group issues profit warning as footfall drops due to the coronavirus outbreak
// Frasers Group & Arcadia joined retailers including H&M, New Look, Superdry & Debenhams in asking landlords for rent holidays
// Frasers Group also asked for the suspension of service charges at shopping centres and retail parks

Frasers Group has warned that its business could face “significant disruption” due to the coronavirus crisis.

The group, which is owned by retail tycoon Mike Ashley, said it would not achieve its previous profit guidance as a result of the uncertainty the outbreak has caused.

Moreover, Frasers Group, along with Sir Philip Green’s Arcadia retail empire, have reportedly asked landlords for rent cuts of up to 50 per cent as both groups attempt to cut costs during the outbreak, The Guardian reported.


READ MORE:


Both retail giants have joined a wave of retailers including H&M, New Look, Superdry and Debenhams in asking landlords for rent holidays or cuts ahead of the quarterly payment day next week.

Ashley also asked for the suspension of service charges at shopping centres and retail parks, as well as rent cuts.

Frasers Group added that its business has experienced reduced footfall to Sports Direct’s stores and, as a result, it “will not achieve the range of guidance of five per cent to 15 per cent EBITDA growth” previously given for the year ending April 26.

As a result of the uncertainty, Frasers Group said it could not give any formal guidance in relation to the 2020 financial year.

The group maintained that its performance “had been in-line with expectations” prior to the outbreak.

It “has a strong management team that can adapt and respond quickly to challenges and changing market conditions”.

Click here to sign up to Retail Gazette‘s free daily email newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here