Coronavirus: Crisis fund launched to help struggling fashion businesses
The British Fashion Council is calling on the government to provide extra support
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Your support makes all the difference.A coronavirus crisis fund worth £1,000,000 has been launched by the British Fashion Council (BFC) to help brands and designers struggling during the pandemic.
The BFC said it was using reserves from its charitable foundation to make emergency loans available to fashion businesses, with some funding set aside for students.
The fund has been made possible through the pooling of talent support grants that are usually awarded for early-stage showcasing support or business growth, the BFC added.
Announcing the move, BFC chief executive, Caroline Rush said: “Now more than ever, we are committed to support the businesses and people that make up our industry.
“With the BFC Foundation Covid Crisis Fund and the donations raised, our hope is to support those British businesses that need additional subsidies, beyond government stimulus available, to address their most urgent challenges.”
The BFC also called on the government to provide fashion designers with support for liquidity in the form of grants or long-term low-risk loans.
It is hoped that such funding could ease the pressure brought on by retail cancellations and sell through guarantees that have been impacted by the outbreak.
The high street has been hit particularly hard during the Covid-19 pandemic after the government closed all shops not selling essential items.
A host of the UK’s most iconic brands have been forced to pull the shutters as the public has been told to stay home and self-isolate, with many forecasting plunging sales and profits.
Fashion and home furnishing company Laura Ashley announced the closure of 70 stores earlier this month, citing pressure added by the pandemic.
Meanwhile, heritage brand Burberry said it expected to see sales plummet by 30 per cent in the final quarter.
Last week, acountancy giant KPMG ear said that the pandemic has brought the UK economy to a temporary standstill, forecasting 2.6 per cent decline in growth for 2020 in its quarterly report.
Flat growth is expected in the second half of the year, the firm said, adding that a protracted outbreak of Covid-19 could also result in a more severe impact than the 2008-09 downturn.
Releasing the report, Yael Selfin, KPMG UK’s chief economist, said: “The Covid-19 pandemic is first and foremost a human crisis.
“But there will also be a very substantial negative impact on the global economy and the UK’s economic performance this year and potentially next, but the economy is expected to recover by the second half of 2021.
“Until we know how and when the Covid-19 outbreak will end, the scale of the negative economic impact will be difficult to quantify.
“However, it is now almost certain that the UK is slipping into its first significant downturn in over a decade.”
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