Mike Ashley's Frasers Group has warned that the retail giant could take a hit of more than £200m because of the pandemic.
That figure is double what the group, which owns Sports Direct, House of Fraser, Game Digital, Jack Willis and Evans Cycles, previously estimated back in February.
Most of Ashley's shops have been closed for months now and, ahead of non-essential retail reopening on Monday, the Frasers Group made a short statement to the London Stock Exchange entitled: 'COVID-19 potential accounting impact on asset values',
'Frasers Group is continuing to assess the Covid-19 potential impact on asset values,' an excerpt read.
'In our ongoing assessment, we note the continuing government and government advisor pronouncements regarding "third waves" and normality being "some way off", meaning further restrictions are in our view almost certain.
'We also note the Covid-19 affected experiences, estimates, and judgements from other leading retailers.
'Consequently, Frasers Group currently anticipates making material accounting non-cash impairments to freehold properties, other Property, Plant & Equipment, and IFRS 16 Right of Use Assets which could be in excess of £200m.'
Ashley, of course, had agreed to sell Newcastle United to a Saudi-backed consortium last year before the group encountered complications with the Premier League's owners' and directors' test.
While there have previously been doubts about whether Ashley is a willing seller, you can see why that £305m bid was so attractive at a time when Newcastle can no longer count on match day revenue and so many of the billionaire's businesses have taken a hit.
Perhaps, then, it should not come as a surprise that Ashley is still 'fighting tooth and nail' for this deal and has issued arbitration proceedings against the Premier League.
