Primark owner ABF confirms eligibility for coronavirus loan
Primark owner Associated British Foods has announced that it is eligible for funding from the government’s Covid Corporate Financing Facility during the coronavirus outbreak.
All of the budget retailer’s 376 stores across 12 countries have been closed since March 22, which represents a loss of £650m net sales each month.
However the company is hoping to partially offset the lost revenue by reducing operating costs.
Earlier this month the company announced that Primark chief executive Paul Marchant’s base pay will be temporarily reduced by 50 per cent.
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ABF chief executive George Weston and finance chief John Bason will also halve their pay, and executive directors have agreed to waive their bonuses for the current financial year.
Meanwhile, ABF chairman Michael McLintock and other non-executive directors will take a 25 per cent fee cut.
Primark has also refused to pay rent on 110 commercial properties as it aims to pressure landlords to revise rent terms during the coronavirus pandemic. The company has also stopped placing new orders with suppliers.
In a trading update last month the company said: “We are making good progress in also reducing fixed costs following discussions with counterparties, in particular landlords, and welcome the recently announced government support in the countries in which our stores operate. “