Mike Ashley’s Frasers Group is anticipating an impairment charge in excess of £100m as a result of lockdown.
In a statement to the London Stock Exchange, the Shirebrook-based businesses said it anticipates making material accounting impairments to freehold properties, other Property, Plant & Equipment, and IFRS 16 Right of Use Assets.
Any impairment would be in addition to impairments included in the firm’s half year results announced on 10 December 2020 and is expected to be included with the company’s results for the financial year ending April 2021.
The news follows the government’s announcement yesterday (22 February) of details on the potential reopening of non-essential stores in England on 12 April.
Frasers said: “Given the length of this current lockdown, potential systemic changes to consumer behaviour, and the risk of further restrictions in future, we believe this non-cash impairment could be in excess of £100m.”