Restaurant Group has signed new long-term loans for approximately £500 million as the Wagamama and Frankie and Benny's owner said that it is burning cash of approximately £5.5 million every month during the latest COVID-19 lockdown in Britain.
The company said that the cash-burn rate is similar to levels that it forecast for the December lockdown and will last until the end of current restrictions for the hospitality sector.
The London-listed firm also plans to reopen some of its restaurants within two weeks of the UK lockdown being lifted for customers seeking dine-in options. It currently has approximately 200 sites open for delivery and takeaways during the pandemic.
British Prime Minister Boris Johnson set out a four-stage easing of the latest lockdown last month as new variants of the virus have sent COVID-19 infections surging. There have been over 4.1 million infections reported in the UK since the pandemic began.
Not Expecting Any Debt Covenant Tests Until June Of 2022
Restaurant Group, which is set to report its 2020 results next week, said that the new debt financing will be partly used to repay and refinance its existing loans, and that it does not expect any debt covenant tests until June of next year.
News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.
