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FRAS - Frasers News Story

575.5p -6.0  -1.0%

Last Trade - 4:42pm

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £3.02bn
Enterprise Value £4.00bn
Revenue £3.81bn
Position in Universe 245th / 1824

UK's Frasers flags possible store closures after 'near worthless' govt support

Fri 5th March, 2021 9:56am
March 5 (Reuters) - Mike Ashely-owned Frasers Group  FRAS.L 
on Friday warned of possible store closures after it reviews its
estate, as the company said government aid for the
coronavirus-battered retail sector was not good enough.
    Britain will extend a year-long business rates exemption for
retail, hospitality and leisure businesses to the end of June,
finance minister Rishi Sunak said on Wednesday as part of his
annual budget statement.  urn:newsml:reuters.com:*:nL5N2L14QD
    "For the remaining nine months of the (financial) year,
business rates will still be discounted by two-thirds, up to a
value of 2 million pounds for closed businesses, with a lower
cap for those who have been able to stay open," Sunak told
parliament.
    "The 2 million pound rates cap ... from July 2021 to March
2022, makes it a near worthless support package for large
retailers," Frasers said in a statement.
    The company, earlier known as Sports Direct, said the rate
cap would make it "nearly impossible" to take on former sites of
collapsed department store chain, Debenhams, with the inherent
jobs created.
    Online fashion retailer Boohoo  BOOH.L  had earlier bought
the Debenhams brand for 55 million pounds, but not its stores. 
 urn:newsml:reuters.com:*:nL8N2K016S
    "Like many retailers, it's clear Frasers had hoped the
Chancellor would use the budget to finally address the
much-discussed inequalities between online and brick-and-mortar
stores, but once again that can was kicked down the road," AJ
Bell analyst Danni Hewson said.

 (Reporting by Tanishaa Nadkar in Bengaluru; Editing by
Ramakrishnan M.)
 ((tanishaa.nadkar@thomsonreuters.com; +919730172534; Twitter -
@TanishaaNadkar;))
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