10th Jul 2020 08:46
(Alliance News) - Restaurant Group PLC on Friday laid out its reopening plans, reporting that it has received a bit more juice in its banking facilities and added that its board has agreed to a 20% pay cut.
The Frankie & Benny's operator said a quarter of its total estate will be back in operation by the end of July and before the end of August, the figure will rise to 60%. By the end of September, 90% will be operating though the remaining 10% are not expected to reopen in 2020.
These sites are "locations where footfall is anticipated to remain considerably weak".
Restaurants in the UK were forced to close back in March in an attempt to contain the spread of Covid-19.
Restaurant Group in June said it will shut 125 of its sites after its creditors voted in favour of a restructuring deal.
Lenders approved the group's company voluntary arrangement deal which will slash its leisure restaurant portfolio, which primarily consists of Frankie & Benny's sites.
The company on Friday also said that it has accessed GBP50 million from the government's Coronavirus business interruption scheme.
It has also extended the term of a revolving credit facility by six months to June 2022, secured a covenant waiver in December - meaning its next test is June 2021 - and reduced its commitment under the facility by GBP40 million.
"Therefore, overall, Restaurant Group has added an additional GBP10 million to the group's overall committed debt facilities," the company explained.
In addition, its executive and non-executive directors will take a 20% reduction in their base salaries or fees while the company still continues to access the Coronavirus job retention scheme, which allows firms to furlough workers.
"This follows on from the 40% reduction (20% for the chief financial officer) that was volunteered from April 1," the company added.
Shares in the company were 1.8% lower at 52.55 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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