Pub operator Marston's, the shares of which have lost 80% of their value in less than a month, has said that it is unlikely to pay an interim dividend and that it is in talks with its banking group about the option of waivers for its debt covenants.
Marston's, which has approximately 1,400 pubs and is known for producing Pedigree, Hobgoblin and Lancaster Bomber beers, said that retaining dividend would save the company £20 million and that it still has "appropriate" headroom in its existing credit arrangements.
"Sufficient Liquidity"
"We believe that we have sufficient liquidity to maintain operations at a materially reduced level of business," the company said, adding that early stage discussions with its bank about waivers had been constructive.
Marston's also said that it will suspend rent for tenants on a case by case basis.
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