Primark makes contingency plans for virus supply cut

Bloomberg

The owner of the Primark budget fashion chain warned that any prolonged manufacturing delays at its factories in China due to the coronavirus could cause supply shortages on certain lines later this year.
Associated British Foods Plc has built up inventories and is “well stocked for cover for several months,” according to a statement, which said the virus could cause problems over the longer term. “We are assessing mitigating strategies, including a step up in production from existing suppliers in other regions.”
The shares fell as much as 2.8% on Monday in London. Over the past 12 months they’ve risen about 11%.
While the situation in China is “fluid,” the firm will adjust its merchandising strategies in shops so that most customers will not notice, finance director John Bason said.