Mitchells & Butlers sales hit by COVID-19 closures

By: Miguel A. Rodriguez

15:18, 22 February 2021

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M&B is looking to raise more capital to keep itself afloat as the pandemic hurt sales

Mitchells & Butlers, one of the largest British operators of restaurants, pubs, and bars, reported a drop in sales.

 The operator revealed that total sales dropped 69.8% on-year after it had to close pubs and restaurants due to the latest lockdown to curb the spread of the newest COVID-19 strain.

The results came after the company announced that it was looking to raise $486.05 million through an offering of shares, and it has made a deal with its bankers for a news credit. M&B proposed to offer seven new shares for every 18 existing shares.

Moreover, Piedmont Inc, Elpida Group and Smoothfield Holding formed a consortium named Odyzean Ltd to become a majority shareholder, owning a 55% stake in the company.

However, Mitchells & Butlers is optimistic about the future, given that “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,” CEO Phil Urban said.

Following the news, Mitchells & Butlers stock price fell 1.5%.

Sources: cn.reuters.com, investing.com

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