Card retailer temporarily closing all stores

The damage to high street trading caused by coronavirus, means retailer Card Factory will temporarily close all its branches from the end of trading today – March 23.

The Wakefield-headquartered retailer, which specialises in greeting cards, dressings and gifts, says it intends to keep this decision under continuous review and will release a further update in due course.

It had previously warned that it was contending with a material drop in high street footfall caused by the coronavirus pandemic.

Other steps being taken by the business to mitigate the impact of the virus include restrictions on new store openings, with these launches limited to those where it is legally committed to complete. 

This stands at seven new stores, and these openings will be delayed until the second half of the year.

Card Factory has also deferred replacement of equipment in its manufacturing plant and is in ongoing discussions with landlords to reduce net cash outflow.

Operational spend will be focused on essential maintenance work in the trading stores.

Card Factory’s update adds: “We note and appreciate the various actions taken by the Government to support businesses and their employees. 

“The reduction in business rates provides a monthly cash saving of £2m, while the deferral of all HMRC payments to the end of June 2020 contributes positively to the short term cash flow. The announced support for payment of wages for colleagues is welcomed. 

We remain confident that the long-term demand for cards and gifting remains robust, with people wanting to share sentiment around special occasions.”

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