Mitchells & Butlers has suspended payments to its staff pension fund ahead of seeking £350 million in liquidity through emergency fundraising. Monthly pension contributions of circa £4 million per month are being ceased for three months.
The revelation comes alongside the group reporting current cash reserves of £113 million, and a cash burn rate of £30 – £35 million per four-week period since January 2021.
The pub and restaurant chain said last week that it intends to raise £350 million of liquidity through an open share buying offer. At that time, the board issued a statement saying the share offer was “critical for the continued operation and financial stability of the group”.
Phil Urban, CEO, Mitchells & Butlers added to the board statement saying: “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.”
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Hospitality & Catering News: Mitchells & Butlers suspends pension fund payments ahead of £350 share call. – 22 February 2021 – Mitchells & Butlers suspends pension fund payments ahead of £350 share call.
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