Gross Profit Damaged by Fire, Smoke and Water!

The recent major fire at Asos’s only UK distribution site in Barnsley, is a reminder that fire alone is not the biggest threat to a business.  The fire in this case is believed to have been caused deliberately resulting in 20% of the firm’s stock (valued at several millions) being fire damaged, smoke damaged and water damaged.

An immediate impact in trading was felt forcing the on line business to pause orders to its website. In an effort to fulfill orders previously taken and to maintain its customers base, management is reported to have offered up to 50% discount to help minimise the reduction in sales.

The building concerned is modern but, according to reports, the fire which started on the second floor spread rapidly to the third and fourth floors and in a statement to the Stock Exchange, Asos said: “None of the technology, automation or structure of the building has been affected by the fire”.

That is good news given the fortunes of a quite separate business that we act for, who recently also suffered what appeared to be a small fire by an office scanning machine overheating in their factory premises. Whilst the fire was extinguished, the smoke and water damage will cost at least £200,000 to put right.

If you feel you have not reviewed your Business Interruption cover adequately in the areas of Customers’ Extensions, added costs after an interruption and the adequacy of your expected recovery to full production, then please contact Dennis Walsh on 0118 9165 486 or complete on of our enquiry forms.

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Author: Dennis Walsh | June 27th, 2014

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Dennis Walsh
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk