Mixed news in bleak day for hospitality sector as Mitchells & Butlers delays pension payment, German
It’s been a day of mixed news in an already bleak time for the hospitality sector, as Boris Johnson is expected to announce venues will remain shuttered until the end of April.
International Consolidated Airlines Group PLC (LON:IAG) announced a similar initiative by British Airways, which is deferring £450mln of pension deficit contributions – a year’s worth – and will repay them with interest.
Mitchells & Butlers has also launched a £351mln open offer to bolster its finances after admitting sales have fallen 70% in the period from 27 September 2020 to 16 January 2021 amid closures in the UK and Germany.
As of January 16, the All Bar One, O’Neill’s and Harvester chains owner had £113mln of cash with all lending facilities drawn.
Since the start of the year and with the estate closed cash burn is running at £30mln and £35mln per four-week period with debt servicing costs of £51mln.
On a positive note, franchiser German Doner Kebab (GDK) said it will nearly double its restaurant estate, adding 47 sites to the existing 52, creating up to 1,800 jobs.
The chain benefitted from the rise in takeaway and delivery trends during lockdowns, with like-for-like sales surging 51% during 2020, Sky News reported.
The new openings are set to be in London, Glasgow, Manchester, Newcastle, Blackburn, Huddersfield, Stockport and Stirling among other UK cities.
Shares in MAB shed 2% to 317.70p on Monday afternoon.