Frasers Group to take further £100m Covid property hit

Mike Ashley’s Frasers Group has said it will suffer a more than £100m hit to its property values after the prime minister announced that non-essential retailers would remain closed until at least April. The retailer, whose home and clothing stores have been shuttered from the beginning of the year, said the non-cash impairments would be a result of the length of the lockdown and changes in shopping habits. The charge would be in addition to impairments it had already announced as a result of the pandemic of nearly £125m, it added. Frasers said the news came “further to the announcement by the government on 22 February 2021 of details on the potential reopening of non-essential stores in England on 12 April 2021”. “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,” it added. To send feedback, e-mail alex.daniel@egi.co.uk or tweet @alexmdaniel or @estatesgazette