Shares in UK confectioner Zetar fell in morning trade today (1 December) after the company revealed the scale of its exposure to the collapse of Woolworths Group.
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UK high street retailer Woolworths, Zetar’s fifth-largest customer, was placed into administration last Wednesday (26 November).
At the time administrators were appointed, Zetar said Woolworths owed it GBP970,000 (US$1.5m), excluding VAT. The company said that it currently has no idea how much of this is recoverable.
The collapse of Woolworths also has broader implications for Zetar, with Woolworths accounting for 3% of the group’s annual turnover.
Zetar shares dropped 6.2% at 10.40 am (GMT) to 166.5 pence.
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By GlobalDataAside from the issue with Woolworths, Zetar said it continues to trade as normal.
However, the demise of Woolworths has added to the problems at Zetar, which is already facing a challenging trading environment, volatile exchange rates and increased raw materials and energy costs.
