City Pub Group to slash jobs as coronavirus threat looms
City Pub Group today said it will lay off staff across the company as it braces for a decline in footfall caused by the coronavirus outbreak.
The upmarket pub chain said it will reduce employee numbers in its head office and at site level, while opening hours will be reviewed to cut out “non-productive” times.
In addition, directors will take a 25 per cent pay cut, while the firm will cut back on other costs such as its Sky and BT TV packages and entertainment.
It comes a day after Prime Minister Boris Johnson urged Brits to practice “social distancing” by staying at home rather than eating out or going to pubs and theatres.
City Pub Group said it was confident it could maintain its operations for at least another six months without needing a cash injection, even if the government extended its measures and forced temporary closure of all pubs and bars.
The company, whose London pubs include The Phene in Chelsea and The Yard in Clapham, said it has entered into negotiations with its landlords over potential rent holidays for the next three to six months.
For the first 11 weeks to 15 March, City Pub Group’s total turnover was up 11 per cent on the same period last year. Like-for-like sales for the same period were down 4.5 per cent.
The company said its balance sheet was strong, with current net debt of £32m against a portfolio of predominantly freehold assets with a net value of £116m at the end of last year.
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