By Jaime Llinares Taboada

Associated British Foods PLC said Monday that it has closed all Primark stores because of the coronavirus and that it is implementing cost-saving measures to minimize losses.

The British conglomerate said that all 376 stores across 12 countries are now closed until further notice, resulting in a net sales loss of around 650 million pounds ($756 million) a month.

AB Foods also said that it is cutting discretionary spending and reducing fixed costs following discussions with partners such as landlords, in addition to stopping new stock orders for Primark. The group expects to recover around 50% of total operating costs, it said.

The company has cash resources of around GBP800 million and a loan of GBP1.1 billion, it said.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

March 23, 2020 03:44 ET (07:44 GMT)

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