As the mounting crisis caused by the Government’s actions over coronavirus continues a string of big names in the High Street are warning that sales have dropped off a cliff.
Zara is closing temporarily closing more than 3700 stores as it looks to survive the emergency laying off staff and shutting up shop. It follows the decision by Selfridges in London who have shut their doors after staff members contracted the virus.
The crisis has already claimed Flybe and Carphone Warehouse, while Laura Ashley, H&M and Mountain Warehouse have all been hit laying off thousands of workers.
Ian Carrotte of ICSM Credit said this was just the tip of the iceberg. “If the Government is correct in predicting the lockdown of parts of the business community such as hospitality, travel and some sections of retailing will continue for 12 weeks or more then there will be casualties. ICSM members hear the inside information on who is in trouble first. It is vital for suppliers of these big stores to cut credit or they will lose out when a big retailer goes bust.”
Joules, Burberry, Next, Selfridges and Superdry have all reported a major drop in footfall and have signalled they have financial problems, while more names are joining the long list of firms feeling the pinch.
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