21/04/2020
City Pub Group has cut its net debt by two-thirds
City Pub Group have raised £22m in an oversubscribed share placing according to Propel. A total of 30 million new ordinary shares have been issued under a placing involving current shareholders, raising gross proceeds of £15m. Meanwhile, in excess of 14 million new ordinary shares have been taken up under an open offer, raising gross proceeds of about £7m.
Le Pain Quotidien UK has been placed on the market
Final offers for the 26-strong business sought by 22 April reports Propel. It is understood advisers Alvarez & Marsal are overseeing an accelerated sales process for the business, which is led by Adrian Johnson, the former chief executive of EAT and ex-managing director of Patisserie Valerie. 19 sites are forecast to generate an Ebitda of £2.8m in 2021.
Potential for Hospitality Bloodbath
Property Weekly reports, leading figures in the sector are urging the government to offer more support to businesses hit hard by the nationwide lockdown.
Revolution increases credit facility to £30m
NatWest has increased the facility until 31 August 2020 and is to waive financial covenant tests. According to Big Hospitality, the operator has furloughed 98% of its workforce and reduced costs by £400,000 per week.
#NationalTimeOut gains momentum
London Union chief executive Jonathan Downey, who has been leading on some of the key thinking for government sector concessions, has urged the industry to get behind his #NationalTimeOut idea, which would include nine-months of national rent free, as well as a matching period of debt repayment postponement for landlords.
Operators open up for delivery
KFC has reopened 11 of its restaurants across the UK for delivery. Pret to reopen 10 units for delivery, and Burger King has opened 4. All are including social distancing measures and Staff at KFC are returning on an opt-in basis, and only those who can travel without the use of public transport have been asked to work. Not to be left out Leeds-based bar and deli group Stew & Oyster has reopened two of its five sites to offer delivery and click-and-collect.
And Finally...
With so many changes in legislation affecting the licensed trade including: closure orders and exemptions, planning, licensing, fees, insolvency, showdown licenses and much more it is hard to keep track. Luckily Poppleston Allen have prepared a summary of the key points.