Wagamama and Frankie and Benny’s owner Restaurant Group (RTN) has successfully increased its banking facilities and directors have volunteered to continue to take a 20% pay cut while the business is still accessing the job retention scheme. The shares cratered 11.6% to 47p.
The company has tapped £50 million from the government’s coronavirus business interruption loan scheme and extended its current revolving credit facility (RCF) by six months to 30 June 2022, while also agreeing an extension of the covenant waiver test to June 2021.
Along with a reduction in commitments of £40 million to the RCF the overall package has added £10 million to debt facilities.
The executive and non-executive directors have volunteered to extend the reduction to their base salaries and fees from 1 July, but at a reduced 20% rate compared with the prior 40% cut from 1 April.
A phased reopening is planned for the reduced 400 restaurant and pubs estate following the recent restructuring with a quarter of the estate to open by the end of July, and 60% by the end of August.
It isn’t until the end of September that 90% of sites are expected to be open with the remaining 10% remaining closed until the end of the year because of expected low footfall in airport locations.