Mitchells & Butlers wins temporary waiver on financing terms

Pub and restaurant chain Mitchells & Butlers said it had secured a waiver from lenders to avoid a breach of its financing terms due to the coronavirus lockdown.

The owner of Harvester and All Bar One said the temporary waiver would last until May 15 pending further talks. It added that 99% of staff were on furlough and had taken pay cuts of 60% - 80% depending on seniority.

Pubs and restaurants were shutdown by the government last month to avoid people gathering in large numbers and spreading the virus. It preceded a more general lockdown forcing people to stay at home except for essential excursions.

“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. In light of this the group is in close contact with stakeholders, with whom it has strong relationships and who are supportive of the long-term fundamentals of the business,” the company said on Tuesday.

It added that it had material cash resources which “should be sufficient to fund obligations well into the second half of the year”.