Loungers has said the partial or complete temporary closure of all of its sites is a potential scenario.

In a trading update, the group said it was taking steps to manage costs, protect cash flow and secure shareholder value and the long-term success of the business in “unprecedented times”.

Loungers has paused its roll-out programme and all capital expenditure.

The group said its “historically low rent to revenue ratio will prove beneficial in this scenario where sales are severely depressed”.

The group has the support of its banks, Lion Capital, with ongoing dialogue to optimise its funding position.

CEO Nick Collins said: “These are clearly challenging times and over the last few days we have been working hard to protect and support our loyal and hard-working teams and ensure we are reassuring our customers and keeping them safe.

”The hospitality sector has been hit hard and whilst I welcome the fact that the Government has finally listened, it needs to do more, urgently, particularly in terms of protecting the financial position of the millions of people who work within the country’s pubs, restaurants, clubs, cafes and bars.

”Loungers is a great business - we will come out of this stronger and in these difficult times we will continue to support the communities in which we trade to the best of our ability.”

 

Topics