KZN unrest leaves Clicks R700m out of pocket
Clicks Group has claimed R726 million from the South African Special Risks Insurance Association (SASRIA) to cover damages during the recent unrest in KwaZulu-Natal.
Some 50 Clicks stores and one the Body Shop store were looted and vandalised.
The affected stores represented 6% of the group's store base.
The group says the money claimed should cover material damage to assets, stock and business interruption.
“The total SASRIA claim amounts to R726 million, comprising loss of stock of R522 million, carrying value of R334 million, replacement of fixed assets of R182 million, carrying value R61 million, and other costs of R22 million.
“It is not yet possible to quantify the full impact of business interruption on the group's revenue and profitability as the timing of the reopening of stores is dependent on shopping centre owners,” it said in a statement.
The group has received first payment of R217 million, which will be accounted for in the 2021 financial year.
“Sales in the last seven weeks of the financial year were significantly impacted by the civil unrest in KZN. In addition to the store closures due to damages and the temporary store closures at the peak of the violence. Trading in the affected areas remains well below the levels of the previous year and this is expected to continue in the short term.”
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