All Bar One owner in cash SOS to investors
PUBS giant Mitchells & Butlers – whose portfolio includes All Bar One, O’Neill’s and Harvester – is asking investors for emergency funds to survive an “extremely uncertain” future.
The company, which employs around 44,000 staff at 1,700 restaurants and bars, is said to be burning through £ 35million to £ 40million a month.
It has £ 125million cash to draw on but credit lines are exhausted as it looks to pay lenders £ 50million by March 15.
The loss of trading – with new restrictions set to last until at least midFebruary in England – has compounded problems after a dismal three- month trading period to the end of November.
M& B, with net debts of £ 1.5billion, has not yet decided how much capital it needs or the timing and terms.
Russ Mould, investment director at broker AJ Bell, warned that M& B needs to act fast to avoid disaster. He said: “Mitchells needs to fix this quick or it will come across a liquidity crunch.
“As the saying goes, if you owe the bank £ 1,500 that’s your problem. But M& B owes its banks £ 1.5billion, which makes it their problem.”
M& B chief executive Phil Urban said: “Mitchells & Butlers was a high performing business going into the pandemic and with the support of our main stakeholders, I have every confidence we can emerge in a strong competitive position, once restrictions are lifted.”
He urged the Government to do more to help the hospitality sector, adding: “There is a real and pressing need.”