// Primark owner AB Foods expects to take £375m hit in sales amid the latest lockdown measures
// It says 57% of Primark selling space will be temporarily closed once lockdown returns for a month from Thurs
// AB Foods also told shareholders that all orders placed with Primark suppliers will be honoured
The parent company of Primark has said it expects to take a £375 million hit from the loss of sales amid the latest enforced closures amid the second wave of the Covid-19 pandemic.
Associated British Foods said around 57 per cent of selling space in its Primark stores will be temporarily closed if Parliament approves plans to shut non-essential shops for a month from Thursday this week.
On Saturday, Prime Minister Boris Johnson confirmed that fashion retailers would be among those required to close from November 5 until December 2 as part of the second lockdown in England aimed at curbing the spread of the virus.
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AB Foods said all Primark stores in the Republic of Ireland, France, Belgium, Wales, Catalonia in Spain and Slovenia were 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.
“Uncertainty about further temporary store closures in the short term remains,” AB Foods added, in a statement to the London Stock Exchange.
The retail giant said it was implementing operational plans which have been developed to “manage the consequences of closures” and was taking action to reduce its operating costs.
It also told shareholders that all orders placed with suppliers will be honoured.
AB Foods added that, as of the end of its financial year on September 12, it had £1.5 billion in cash reserves, with a total liquidity of around £3.1 billion including lending facilities.
In September, AB Foods said a surge in summer sales had put it on track to top its profit targets for the year.
On Tuesday the company, which also runs a raft of FMCG businesses, will reveal its annual results for the financial year.
with PA Wires
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