N Brown PLC (LON:BWNG) has taken a range of actions to conserve cash after sales in the past week plunged by 40%.
The clothing retailer that owns the JD Williams, Simply Be and Jacamo brands said while it is impossible to give accurate guidance, it is budgeting for a material reduction in demand throughout the current year.
Dividends have been postponed indefinitely, stock purchases halted and all non-essential expenditure stopped while talks have started with HMRC to defer tax and national insurance.
In addition, the Group is exploring all options in relation to the government and Bank of England support packages for business.
N Brown added it is almost at the limit of its current funding arrangements and is looking at additional loans or leveraging its debtor book further, though it is having to re-work its bad debt assumptions due to the current crisis.
Because of this review of bad debts, the group's adjusted profit before tax to be lower than the previously guided range of £70mln to £72mln while there is no guidance for the current year.