20-03-2020
A recent Bloomberg report covering 50 listed companies in China says almost half of the firms, including jewellery brands, do not have enough cash to survive another six months if consumers keep staying home amidst the coronavirus crisis.
According to the report, restaurants are the most vulnerable business during the virus outbreak, with about 60 percent unable to cover labour and rental costs. Although the number of cases in China has gradually lessened and big chains including Starbucks and Haidilao have reopened stores in low-risk areas, consumers are still hesitant to dine out. It is said that the hotpot giant has hundreds of millions of dollars to support its business through nine months, while small and medium businesses are already collapsing as they run out of cash.
Among jewellery and apparel firms, almost half don’t have the cash to last the six months unless demand rebounds sharply, said Bloomberg. While the largest consumer companies such as Chow Tai Fook “can cover selling and marketing expenses beyond the six months”, “Leysen Jewelry can only cover fixed costs for three months”. (Photo courtesy: Rapapor)
← Back