(Reuters) - Plus-sized fashion retailer N Brown (BWNG.L) has maxed out its main credit facilities and may need further funds under a downside scenario for the coronavirus shutdown, the company said on Monday.
The Manchester-based apparel maker, which employs 2,400 across the UK, said it was in talks with its lenders as well as with UK tax authorities about the deferral of tax and national insurance payments.
“During the last week we have seen a very significant and sudden reduction in customer demand with daily product sales down in excess of 40% compared to expectations,” N Brown said.
It also suspended its dividend for the foreseeable future and warned that its 2020 adjusted pretax profit would be below its prior forecast of a 70 million pounds to 72 million pounds range.
Before the virus crisis spread spiralled out of control, N Brown had issued a profit warning in January citing poor performance at its financial services unit and more discounting in the market.
The owner of JD Williams, Simply Be, Ambrose Wilson and Jacamo has been focusing on improving its online presence as the UK retail landscape is going through a tough period with more people shopping online and as costs rise.
N Brown also said the publishing of its results for the year ended Feb. 29 was likely to be delayed beyond April 29.
Reporting by Tanishaa Nadkar and Muvija M in Bengaluru; editing by Patrick Graham and Amy Caren Daniel