Menswear retailer Moss Bros has announced that it will be postponing the release of its full-year financial results due to the significant impact of the ongoing Covid-19 crisis. Initially scheduled for release in late May, the company has now pushed back the date to late July. This decision comes in response to guidance from the Financial Conduct Authority and Financial Reporting Council, which allows companies to delay the publication of audited financial statements by up to two months if needed.
Like many businesses in various industries, Moss Bros has been forced to reevaluate and adapt its operations in light of the coronavirus pandemic. The company understands the need for adjustments during these challenging times and encourages other companies requiring the additional two months to utilize it effectively. The measures taken to combat the spread of the virus have caused significant disruptions to Moss Bros’ operations. In compliance with government guidelines, the retailer was compelled to close all its UK stores at the end of March. Additionally, online trading has been temporarily suspended, and the company’s warehouse has been closed as well.
These actions have had profound implications for Moss Bros, which had previously received a takeover offer of £22.6m from Brigadier Acquisition Company, the owner of Crew Clothing, prior to the widespread outbreak of Covid-19 in the UK. It is anticipated that the pandemic will lead to a substantial reduction in the company’s revenue for the year ending January 30. Despite the challenges, Moss Bros states that it possesses sufficient cash reserves to navigate through the decline in activity.
The decision to delay the release of the full-year results is a reflection of the difficulties and uncertainties faced by companies in the current economic climate. By granting more time for the completion of financial statements, Moss Bros aims to present a more accurate representation of its financial performance during this disruptive period. Furthermore, this move serves as a reminder of the unique obstacles encountered by retailers amidst the Covid-19 crisis and showcases the efforts being made to mitigate its impact on their businesses.
To learn more about how the Covid-19 crisis is affecting the retail industry, you can visit the following links for additional information:
1. Retail Dive – How Retailers Are Responding to Coronavirus
2. Retail Week – Retail Predictions: How Will the Industry Recover in 2021?