AB Foods Closes All Primark Stores
March 23 2020 - 3:59AM
Dow Jones News
By Jaime Llinares Taboada
Associated British Foods PLC said Monday that it has closed all
Primark stores because of the coronavirus and that it is
implementing cost-saving measures to minimize losses.
The British conglomerate said that all 376 stores across 12
countries are now closed until further notice, resulting in a net
sales loss of around 650 million pounds ($756 million) a month.
AB Foods also said that it is cutting discretionary spending and
reducing fixed costs following discussions with partners such as
landlords, in addition to stopping new stock orders for Primark.
The group expects to recover around 50% of total operating costs,
it said.
The company has cash resources of around GBP800 million and a
loan of GBP1.1 billion, it said.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
March 23, 2020 03:44 ET (07:44 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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