Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

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.

ADVERTISEMENT

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.

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Chronicle the ‘Retail Apocalypse’ and emerging retail models, including DTC brands.

What a Fashion Company Is Worth Today

In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.


What’s the Plan at H&M?

The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections