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Frasers Group to Book $140 Million Lockdown Impairment Charge

Mike Ashley's Frasers Group owns Sports Direct and House of Fraser.
Mike Ashley's Frasers Group owns Sports Direct and House of Fraser. Shutterstock (Shutterstock)

British sportswear retailer Frasers will book a non-cash charge, potentially in excess of £100 million ($141 million), in its 2020-21 results to account for impairment of its assets during the latest COVID 19 lockdown, it said on Tuesday.

On Monday Prime Minister Boris Johnson set out England’s roadmap out of lockdown with non-essential stores not opening until April 12 at the earliest.

Frasers, which was formerly called Sports Direct and is controlled by Mike Ashley, said it anticipated making material accounting impairments to freehold properties, other property, plant and equipment, and other assets.

“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 £100 million,” it said.

While its shops have been closed Frasers has been able to serve customers online.

Shares in Frasers, down 6.5 percent over the last year, closed Monday at 460 pence, valuing the group at £2.4 billion.

By James Davey; editors: Paul Sandle and Louise Heavens.

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