Mitchells and Butlers has furloughed 99 percent of its 46,000 staff, according to a statement released on 14 April, as well as cutting basic pay for all employees, according board members, by 60 to 80 percent.
The Birmingham-based pub company, which operates All Bar One, O’Neills, Harvester and Toby Carvery, made the decision to counter the effects of the Coronavirus lockdown, posting positive predictions for its ability to weather the storm.
“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,” said the statement.
“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 group has material cash resources that we believe should be sufficient to fund obligations well into the second half of the year.” The company closed the doors of its UK-wide estate on 20 March, and though the prolonged closure could amount to a technical breach of Mitchell & Butlers’ secured financing arrangements, the firm stated a brief hiatus on its financial obligations.
“As a first step, we are announcing today that a temporary waiver until 15 May has now been granted to avoid [the breach] pending further discussions.”