Frasers Group has warned it could take a hit of more than £200m due to coronavirus lockdowns that have shuttered its stores.

The company told investors on Friday the non-cash charge would account for the loss of value in its assets, including property, during the current COVID-19 lockdowns.

The estimate is double what the company had forecast in February.

In an announcement to the London Stock Exchange, the firm added: “Frasers Group is continuing to assess the COVID-19 potential impact on asset values.

“In our ongoing assessment we note the continuing government and government adviser pronouncements regarding ‘third waves’ and normality being ‘some way off’, meaning further restrictions are in our view almost certain.

“We also note the COVID-19-affected experiences, estimates and judgments from other leading retailers.”

In December the group issued a profits warning just after the government announced new coronavirus restrictions closing non-essential retail across large parts of the country.

But Frasers is now preparing to reopen much of its estate from Monday, as non-essential retailers are allowed to welcome back customers under PM Boris Johnson’s roadmap out of lockdown.

The group, controlled by Mike Ashley, includes House of Fraser, Game Digital, Jack Wills, Evans Cycles and Sports Direct.

Evans Cycles has remained open during lockdown as an essential retailer.

Like many of its competitors, Frasers has relied on online trading as the high street reels from the effects of restrictions that helped account for the loss of two big names and thousands of jobs in recent months.

Sir Philip Green’s Arcadia, which includes Topshop, and Debenhams are to disappear from town centres in the wake of their pre-Christmas collapse.

Debenhams, along with Arcadia’s brands, have been snapped up this year and shared among established online players ASOS and Boohoo who will trade them online-only.

Related posts:

Tracking technology company Buddi banks on £500m float Bank of England’s chief economist announces new role Buoyant IPO markets propel Peel Hunt towards £350m float Game of Thrones maker HBO and Warner Bros film studio spun off in $43bn deal Bicycle brand Ribble gets into gear for sale as industry sales surge Heathrow says it has slipped from number one to tenth place among Europe’s airports Advent and wealth fund brew up joint £4bn bid for Unilever tea arm Tesco launches reusable packaging trial – as Waitrose scraps single-use plastic bags from deliveries Heathrow says business travellers cancelling flights over testing rule fears High street banks commit to cash access guarantee amid branch closures row UK workers facing ‘worst Christmas wage squeeze in almost a decade’ Unilever shares fall as it defends £50bn approach for GSK’s Aquafresh to Panadol consumer arm