Shoe Zone to close 20 stores and reports £2.5m loss for half year
Footwear retailer Shoe Zone has reported a statutory loss before tax of £2.5m, for the six months to 4 April 2020.
Pre-tax losses have widened compared to £1m in the first half of last year as revenue edged down to £68.9m from £73m.
Shoe Zone said the drop in profit and revenue reflects the early impact of COVID-19. Since 24 March all Shoe Zone stores had been closed, with 415 of those stores now re-opened on 15 June, in-line with government guidelines.
The company also confirmed that following an extensive review of its store portfolio, it has closed an additional 20 stores permanently during lockdown.
The company said it has also taken out a £15 million Coronavirus Business Interruption Loan (CBILS) to help it thorough the downturn, of which £10 million has been drawn down to date.
A statement from the company said: “Cash remains the key focus for the business and as stated on the 29 April 2020, the immediate focus will be on rebuilding cash balances to a higher level than previously carried and repaying the debt taken on as part of the CBILS scheme whilst fulfilling other statutory obligations.
"The Board remain confident that the Group’s current level of funding will be sufficient to secure the future of the business, assuming that sales return to a high proportion of previous sales during the next year.
“The Board would like to thank all of the Shoe Zone team and its business partners for their hard work and support in the first half of the financial year and during the current COVID-19 period.”