Coronavirus: Shoe Zone scraps dividend | News

The retailer’s turnover dropped 3.4% to £69.9m for the 50 % 12 months, in contrast with the exact same interval in the prior 12 months.

It explained it will suspend dividend payments until eventually it has rebuilt hard cash balances to a higher stage than beforehand carried, repaid credit card debt and fulfilled other statutory obligations. 

It also reissued its prior assertion, which explained: “The Covid-19 pandemic will have a material influence on the company’s performance for the recent money year”. 

At the close of business on 28 April, the business had a net hard cash balance of around £5.4m, possessing utilised its present £3m banking facility. 

Shoe Zone has also secured a £15m bank loan from the government’s coronavirus Massive Business Interruption Bank loan Scheme. It is provided by its major financial institution Natwest. 

The retailer explained: ”The timing of the reopening of the company’s retailers remains unsure in addition the course of action of reopening, once it begins, is probably to be sophisticated.” 

It explained it is in ongoing negotiations with its suppliers and landlords, including: “With the co-operation and understanding of these stakeholders, the board consider the company’s recent stage of funding will be ample to protected the upcoming of the business, assuming that retailers are permitted to open up step by step throughout the summer season months and return to a significant proportion of prior profits over the future 12 months.”