Pub Operators Mitchells & Butlers And Fuller, Smith & Turner Announce Job Cuts And Financial Losses
British pub operators Mitchells & Butlers and Fuller, Smith & Turner have said that they have cut approximately 1,650 jobs and suffered millions in financial losses due to the impact of the co...
British pub operators Mitchells & Butlers and Fuller, Smith & Turner have said that they have cut approximately 1,650 jobs and suffered millions in financial losses due to the impact of the continuing COVID-19 pandemic.
Mitchells & Butlers, which owns All Bar One, Harvester and Browns, said that it has cut 1,300 jobs, while smaller rival Fuller, Smith & Turner said that its total number of employees has been reduced by 20% following approximately 350 job cuts, the sale of its pizza chain The Stable and through natural attrition.
The companies said that they have enough resources to operate in the foreseeable future, but that the downside scenarios cast doubts about their ability to continue as going concerns.
"We are optimistic about the future in the medium term and beyond, but there is no doubt that this will be a tough winter," Fuller, Smith & Turner CEO Simon Emeny said.
Losses, Net Debt And Staff Numbers
Mitchells & Butlers recorded an adjusted pre-tax loss of £32 million for the year that ended on September 26, while Fuller, Smith & Turner recorded a first-half loss of £22.2 million.
With £1.56 billion in net debt as of September 26, Mitchells & Butlers in June had agreed to revised financing arrangements with its main creditors to bolster its available reserves after avoiding a debt default in April.
Mitchells & Butlers employs approximately 44,000 people, according to its website, in 1,700 pubs across Britain, while Fuller, Smith & Turner employs 4,957 people in over 200 pubs, its latest annual report showed.