Brexit no deal frightens Burberry: “We might lose millions of pounds”. Adidas is concerned, while BFC asks for a new referendum

Brexit effects on Burberry’s business turnover

Burberry’s plan to revamp their business basically hangs on saving 100 million pounds at least. At present, the British fashion group is still dealing with a revamp strategy, designed by Marco Gobbetti, which has been lately sending some comforting messages: +1%, in the same business area, was reached in the last quarterly statements. It would be a shame, then, if something else happened: that could spoil the plans. That is why Burberry’s financial managers are rather concerned, as reported by The Times, about the possibility that customs duties will be imposed again, following Brexit: in such case, the group, who closely works with the European Union for provisions of materials and finished products, would possibly lose “several millions of pounds”, in terms of costs. That would consequently affect, inevitably, the product design and development.

Adidas concern and BFC plea

Not only Burberry are concerned about the possibility that next March the United Kingdom will withdraw from the European Union without a deal on commercial relations. While speaking to CNBC, Kasper Rorsted, chief executive officer of Adidas, hoped for a new referendum. In his opinion, Prime Minister Theresa May (in the picture) should call for it to make things clear: “We are talking about Brexit as if it were just an isolated matter – quoting his words –, but we are worried because its consequences would deeply affect commercial relations in all Europe”. Ultimately, the British Fashion Council, which has never been keen on Brexit, issued a very straightforward press release. They asked the government and the Prime Minister to call for a new referendum: in their opinion, considering the “instability of the current economic scenario, no-deal would remarkably hit the industry business”.

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