The Works set to close all stores and rules out full-year guidance

Retailer The Works is set to close its stores despite experiencing a “significant uplift” in sales as parents flocked to its stores to prepare for homeschooling last week.

The retailer of gifts, arts, crafts, toys, books a stationery has declined to comment how the closures will affect its full year results, despite it being just five weeks away from its year-end.

Trading in the nine weeks since the Group’s last update on Thursday 16 January 2020 to Sunday 15 March 2020 had been strong, with LFL sales growth of +2.9%.

In a statement, The Works said the Government’s announcement of a reduction in business rates will save it around £1.2m a month, while the temporary deferral of HMRC payments will “contribute positively” to its short-term cash flow.

The statement added: “Given the continued uncertainty as a result of COVID-19, the Board does not believe it appropriate to provide guidance for the financial years ending April 2020 or April 2021 at this time.”