Kingfisher plc (LON:KGF) said it was taking “immediate and significant measures” as all of its stores in France and Spain have closed due to the coronavirus lockdowns in those countries.
The DIY retailer said its 221 Castorama and Brico Dépôt stores in France have been shuttered since midnight on Sunday after the French government ordered the closure all non-essential places used by the public.
READ: All the company and market reactions to coronavirus
Likewise, Spain’s government also declared a state of emergency at the end of last week, with all citizens ordered to stay inside apart from essential visits such as to supermarkets or pharmacies.
Kingfisher chief executive Thierry Garnier said the company was taking action on costs and “to protect its financial position”.
With management modelling the impact of various “downside scenarios” on the business, urgent action is being taken to reduce costs and optimise cash flow and liquidity, including cutting operating expenditure, reducing stock purchases, stopping all but essential capital expenditure, and making use of tax payment and other government relief measures.
The company had cash and equivalents of £250mls as at 13 March and access to undrawn bank credit facilities of £775mln, while debt stood at £136mln, or £2.5bn when including lease liabilities.
The retailer said it has not seen any impact on its stores in the UK, Poland, Romania, Portugal and Russia yet, but no lockdowns are in place.
Kingfisher shares were down 16% to 115p in early trading on Monday, around their lowest levels since 2008.