6th Apr 2020 11:42
(Alliance News) - Restaurant Group PLC on Monday said it has increased flexibility in its banking facilities and made changes to the board to improve its liquidity amid coronavirus uncertainty.
The chain of restaurants and public houses confirmed that the TRG Lending Group, its consortium of banks, has agreed that there will be no covenant test at the half year.
In addition, Restaurant Group said Santander has increased its super senior revolving credit facility to Wagamama to GBP35 million from GBP20 million.
Restaurant Group executive directors have decided to reduce their base salaries for a period of three months from the start of April, the company said. Chief Executive Andy Hornby has volunteered to take a 40% pay cut, while Chief Financial Officer Kirk Davis will take a 20% reduction. Both directors have also volunteered to forego their bonuses for 2019, which were due to be paid on March 31.
Non-executive directors have proposed to reduce their fees with effect from April by 40%. Meanwhile, Mike Tye has offered to step down as a non-executive director and chair of the Remuneration Committee with immediate effect.
"These are unprecedented times for our business and our sector. Against this backdrop we have taken decisive action to improve our liquidity, reduce our cost base and downsize our operations," said Hornby.
Restaurant Group shares were trading 0.9% lower in London on Monday at 38.20 pence each.
By Evelina Grecenko; [email protected]
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