Restaurant Group Working With Lenders To Waive Covenants

By Dave Simpson
Restaurant Group Working With Lenders To Waive Covenants

Frankie & Benny's owner Restaurant Group has said that it is working with its lenders to have covenants waived throughout 2020.

Restaurant Group said that it will be working with landlords across all business areas to reduce rents.

It expects to take a £15 million pound hit for each month the entire group is in shutdown after the first ten weeks.

Comparable Sales Hit

Restaurant Group also warned that its comparable sales will fall 25% in the current fiscal year due to a hit from the rapidly spreading coronavirus, and that its adjusted core earnings for the year ended December 2020 will be between £95 million and £105 million, compared to £136.7 million pounds a year ago.

The company said that it will slash its capital expenditure for 2020 by at least £45 million from its previous estimate of £75 million.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.