Joules clothing has urged the Government to do more to help workers in the UK retail sector as the economic impact of coronavirus continues.
The business – which has seen its share price plummet from £1.70 to 40p in the past month – said it had cash in bank to tide it over as it works to maintain the “long-term value” of the brand.
It is also cutting non-critical capital expenditure.
In a “Covid-19 update” the Leicestershire-based business said: “The group currently has £16 million cash headroom, a strong relationship with its bank, Barclays Bank Plc, and a supportive founder and major shareholder, Tom Joule.
“The board continues to plan for multiple scenarios and explore various ways to mitigate the impact of reduced demand for a potentially extended period of time.
“The board welcomes the measures that the UK Government has thus far announced to support retailers and impacted employees across the sector.
“However, we strongly echo the position of the British Retail Consortium and other senior retail leaders that more urgent action is needed to provide support to those working in retail during these challenging and uncertain times.”
Since the outbreak of Covid-19 in the UK, Joules has experienced a drop in sales at its 124 UK and Ireland stores which has significantly accelerated in the last few days.
Online sales have also been hit, though to a lesser extent, with shoppers being more cautious about their spending habits.
The business said its concession and wholesale trading partners would also be feeling the slowdown.
Chief executive Nick Jones said: “The challenges that all retailers are currently facing are unprecedented in modern times.
“Our immediate and over-riding objective is to ensure the wellbeing and protection of our colleagues and our customers.
“Our teams continue to demonstrate a flexible, can-do attitude during this testing time, and I would like to thank my colleagues across the world for their continued commitment and positivity.
"While the Group's near-term profitability will be impacted by the sector-wide effects of COVID-19, the Board is remaining focused on protecting long-term value for its stakeholders and managing the near-term pressures on the business.
"We have an outstanding, unique brand and a fantastic team. I am very confident that Joules will successfully emerge from this very difficult period in a position to continue to deliver its exciting long-term growth plans."
