Wetherspoon boss cannot ‘rule out’ job cuts after first loss in decades

JD We th e r spoon chairman Tim Martin said he was unable to “rule out” future job cuts as the company reported its first annual loss in 36 years.

The pub chain reported a loss of £105.4 million after sales took a £556m hit from the Covid-19 crisis.

The firm said it saw an increase in business in the weeks following the easing of lockdown but the new restrictions and 10pm curfew have seen this fall back.

Speaking to journalists in L ondon yesterday, founder Mr Martin said it was “difficult” to say how long the chain could last w i thou t fu r th e r fundraising, adding it “kind of depends on the government”.

He said: “We can last for a decent amount of time, possibly a year or two, but if everything goes into Tier 3 (restrictions), it will shorten the times.

“And it will be (able to last) forever if we go back to what (measures) was applied on July 4.”

Asked if he would be forced to “reduce headcount”, Mr Martin said: “You can’ t rule anything out at the moment.”

The company suffered a £29m hit from one- off costs due to coronavirus, including £5.9m in drinks and food that had to be thrown away, £6.2m on PPE, screens and other equipment to make pubs Covid-secure, and £17.1m on staff costs. However, it benefited from a £15.9m payout from HMRC over a long - term gam ing machine dispute.

The loss is the first time the chain has sunk into the red since 1984 but the firm remains confident it can continue to trade.

JD Wetherspoon founder Tim Martin.