Penneys Owner Commits To Paying For €424m Of Orders During Coronavirus Crisis
Published on Apr 20 2020 11:11 AM
Penneys which trades outside Ireland as Primark has committed to pay suppliers for €424 million (£370 million) of orders, though all its stores are closed due to the coronavirus pandemic.
All of Primark's 376 stores in 12 countries have been closed since 22 March, representing a loss of €745 million (£650 million) of net sales per month.
The retailer, owned by Associated British Foods, had previously only committed to paying for orders that were in transit or booked for shipment by 18 March.
However, it said on Monday that following talks with suppliers it would pay for an additional €424 million (£370 million) of orders that were either in production or finished, and planned for handover by 17 April.
The new commitment brings Primark’s total stock both owned and committed to nearly €2.3 billion (£2 billion) while its stores remain closed.
Primark said on 23 March it had informed suppliers that it would stop placing new orders. It said on Monday it hoped to re-commence placing future orders for autumn/winter stock once there is further clarification of the reopening of stores.
The retailer has also established a fund to make sure workers are paid as soon as possible for work on Primark products that were in production.
AB Foods, whose shares have fallen 23% so far this year, will publish first half results on Tuesday.