Large firms plead for financial rescue deal

THE cinema, hotel and skiresort company Event Hospitality & Entertainment, chaired by Alan Rydge, has called for more help for large companies as lockdowns bite.

The extended lockdown in Sydney has prompted cries for relief to go beyond smaller enterprises.

Leading national furniture chain Freedom Furniture has been forced to stand down more than 100 staff across its stores in NSW as the protracted lockdown in that state robs it of business and the tremors running through the nation’s $320bn retail sector threaten an employment disaster.

Freedom Furniture has taken the decision to stand down 108 staff across eight stores in NSW, with the retailer asking employees to access annual leave, long service and any time in lieu.

It is the latest in a potential wave of job losses and staff stand-downs in the retail sector, not only in NSW but also other parts of the country as the limited government payments are not enough to keep businesses afloat.

Paul Zahra, chief executive of the Australian Retailers Association, has said the feedback from retailer members was that wide-scale staff cuts would start to be triggered. Mr Zahra has also called for the return of JobKeeper.

Event, which owns cinema chains, hotels and tourism assets, received $41.7m under the JobKeeper scheme and has now called for more payments as Sydney cinemas face long closures.

Event chief executive Jane Hastings said the expectation was that an effective vaccine rollout program would mean that the impact of snap lockdowns would be mitigated, and government support would no longer be required.

“In light of the current lockdowns resulting in restrictions that are now impacting most of Australia, further support is required. We are pleased that the business support packages are being offered to small and medium businesses, however, they are currently not applicable to large businesses with the most employees,” Ms Hastings said.

“We are pursuing all options via our industry bodies and through direct contact with government. The group continues to take all actions within its control to mitigate the impact of lockdowns.”

Event also sold a series of properties as strict lockdowns crunch its cinema operations in Sydney and Melbourne. It has sold $79.6m worth of property and in a reflection of rising commercial prices these were struck at a $29.8m premium to valuations.

Ms Hastings said the property sales had enabled the company to reduce net debt levels, progress major developments and undertake key asset upgrades.