Pub chain Mitchells & Butlers has secured £100 million in new coronavirus funding which will safeguard 45,000 UK jobs.
The company, which owns brands such as O’Neill’s, All Bar One and Harvester, has arranged the new capital from HSBC UK and Santander UK as part of the Government’s Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The funding, which was split equally between the two banks, is one of the first CLBILS deals since the Government updated it last month to allow loans of up to £200 million.
Listed Mitchells & Butlers, which is headquartered in Birmingham and one of the largest UK operators of pubs, had to close 1,700 sites following the start of the lockdown but this new loan will enable the company to continue operating as it prepares to reopen.
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Chief financial officer Tim Jones said: “We are grateful for the strong working relationships we have with our banking group, enabling us to put together this support funding in uncertain times.
“As we come through the challenges posed by the abrupt shutdown of the hospitality sector, we now look forward to welcoming back guests into our sites where safety will clearly be of paramount importance.”
Akhil Shah, relationship director at HSBC UK, added: “The hospitality industry has been particularly hard hit by covid-19 so providing this support for one of the UK’s largest operators marks an important step in the recovery of the sector.
“As restaurants, pubs and bars prepare to safely reopen, Mitchells & Butlers’ actions to protect jobs and support the industry’s supply chain provides some much-needed confidence in this crucial part of our economy.”