Penneys owner warns of massive losses if stores remain closed until end of February

The owners of Primark, trading as Penneys in Ireland, has warned that the company could face losses of €1.2 billion if stores remain closed until the end of February.

The fashion chain has noted that 305 of its 389 shops around the world are currently closed due to coronavirus restrictions, a situation which is expected to cost €1.18 million in lost sales.

Associated British Foods (ABF), which owns Primark said that “The impact of store closures on Primark’s performance is significant. We now expect full year sales and adjusted operating profit for Primark to be somewhat lower than last year.”

Penneys stores in Ireland faced prolonged closures throughout 2020 and haven’t been open since December. An Tánaiste Leo Varadkar said last week that businesses should prepare to remain closed to the public until the end of March.

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