All Bar One, Harvester & Toby Carvery in Crisis Talks as it Seeks £351m Rescue Fund

All Bar One, Harvester & Toby Carvery in Crisis Talks as it Seeks £351m Rescue Fund.

MITCHELLS & BUTLERS bosses have revealed that they are worryingly burning through £35 million (€40.5 million) a month as a result of national lockdowns and restrictions and has announced the formal launch of a £351 million (€406 million) fundraising exercise to prop up its balance sheet.

As a result of the huge losses and debt interest payments of £51 million (€59 million) due by mid-March, the company has agreed with pension trustees to delay monthly contributions from January to March. They will resume in April.

The company, which also owns Toby Carvery and Harvester, said it had a cash balance of just £113 million (€131 million) as of January 16, with the fundraising efforts dubbed as being “critical for the continued operation of the group and its immediate financial stability”.

Mitchells & Butlers chief executive Phil Urban said: “M&B was a high-performing business coming into the pandemic and, with the support of our main stakeholders, including the equity injection from this open offer, we have every confidence that we can emerge in a strong competitive position once current restrictions are lifted.

“The hospitality industry has done everything that has been asked of it to date and, now that the vaccines are being rolled out and infections are dropping, we are hopeful that pubs and restaurants will soon be allowed to reopen safely so that we can start to serve our customers again.”

A consortium of three of its largest investors Piedmont, Elpida Group and Smoothfield, which joined forces to create a new holding company, Odyzean, previously said they will be able to make the whole £351 million available for the fundraising launched on Monday, February 22.

Odyzean, which holds 55 per cent of the company, said it is fully supportive of the current management team but that it plans to review the current composition of the board of directors.