Lerners, selfridges and local department stores closing after ‘dire’ stock market decline
Posted On July 28, 2021
Selfridges, Lernars and local retailers are closing their doors after falling to record lows and their stock prices have crashed in recent months.
Retailers have been hit with a sharp fall in profits and earnings amid a global economic slowdown, a sharp drop in demand for their products, a surge in the number of goods coming off their shelves and rising consumer debt.
On Tuesday, the shares of Lernar fell by 6.4 per cent to £1.16, the second-worst performance on record.
Lernard shares fell by 5.9 per cent on Tuesday to $1.34, the worst performance on a day when the stock price fell by nearly 5 per cent.
The company said in a statement that the stock market “is experiencing severe market downturns” and it “must continue to do all it can to support its financial position and growth, including reducing its cost of doing business”.
The Lernards’ sales slumped by more than 3 per cent last year.
“In light of these circumstances, the company has decided to shut down and sell the business and to divest any assets to support growth,” the company said.
Selfridges said it was taking “immediate steps” to reduce costs, including “discontinuing the sale of Lendl products to certain customers, and investing in new products and technology”.
Lernard had reported a 13.2 per cent decline in profit in the second quarter of this year, compared with a 16.1 per cent gain in the first.
The company said the fall in profit came as “a result of significant declines in our business, which include a decrease in the value of the store network, lower sales volumes and lower margins”.
It also said the business’s operating income in the quarter was down by 3 per