Mitchells & Butlers Avoids Debt Default; Furloughs 99% Of Its Staff
Pub and restaurant operator Mitchells & Butlers has said that it has avoided a technical debt default until May 15, as it braces for a longer lockdown of its UK pubs and restaurants, and has cast doubt on how its venues will reopen.
The owner of All Bar One, Toby Carvery, Harvester and Browns said that it has furloughed 99% of its employees.
"Great uncertainty remains not only as to the extent of the current shutdown, but also the profile of any reopening and recovery period back to normality," the company said.
Mitchells & Butlers, the sites of which have been closed for over three weeks, said that basic pay for all employees, including the board, has been reduced to between 60% and 80%.
Shares in the company fell 5.8% to 209.5 pence by 0736 GMT on Tuesday April 14.
Reducing Costs To Conserve Cash Flow
Last month, Mitchells & Butlers said that it could suffer a significant loss and still meet conditions in its debt programme, but that it was reducing costs to conserve cash flow.