Brewhouse & Kitchen anticipates trade will recover to pre-pandemic levels within one year.

The brewpub operator is looking to raise money to mitigate against the lost sales during lockdown and recovery period, and has three offers of refinancing of existing loans.

The company also intends to grant a rights issue to raise circa £2.5m.

It already has loans of £4.3m repayable in 2021, with one banking covenant breached, though the lender has replaced the covenant on the basis the company will meet the new agreement.

The brewpub and restaurant operator posted on operating loss of £828,921 for the year ending 28 September 2019. Turnover was up 7% to £15.16m.

A further £1.7m in new equity was raised during the period.

The business continues to prepare for a “possible liquidity event”, thought this is seen as highly unlikely in the next 12 months, due to the state of the wider marketplace.

Brewhouse & Kitchen acquired a site in Worthing during the period, though development on this is currently on standby.

Plans to develop boutique hotel rooms in its Bristol and Southbourne brewpubs are also on hold.