High street bakery chain Greggs has scrapped its dividend as it announced it will close its 2,050 branches across the UK due to coronavirus.
The company, which suffered a 9.9 per cent drop in sales last week, said all of its stores will close at the end of the day tomorrow for up to three months.
In a market update this afternoon Greggs said it no longer expects to increase profit this year.
Greggs also said it has paused its expansion plans and will now only complete existing shop projects, with a view to remove £45m from this year’s planned capital expenditure programme.
The cafe chain will ask landlords to accept monthly rent payments, rather than quarterly, from June.
“Whilst the outlook during this crisis remains uncertain Greggs is a resilient business with strong growth credentials and we should be confident of its ability to navigate this event and return to growth when the economy recovers,” the company said in a statement today.