THE boss of pub chain Wetherspoons has come under fire for saying he plans to reopen his bars and hotels in June.
Tim Martin revealed the extent of the carnage caused to the business due to the coronavirus lockdown.
Plans have started and bosses said they hope to benefit from the chain having typically larger pubs than its rivals.
In an after-hours stock market announcement, the business said: “The company is likely to make some changes to its operating model, assuming increased social distancing, and anticipates a gradual recovery in customer numbers.
“Wetherspoon pubs are substantially larger than average, and most have outside facilities. The company believes these factors are likely to assist if social distancing measures apply.”
Martin also revealed the Government’s business rates holiday has saved his firm around £60 million and he is looking at applying for a Bank of England loan for large companies.
However, the loan may not be possible due to Wetherspoon’s not being an “investment grade” business on some measures, the company said.
To stem the flow of cash leaving the company, shareholders will also be tapped up for around £141m through a fundraiser by issuing new shares.
The 43,000 workers across 874 pubs received around 80% of their salaries in March, despite the boss previously warning workers they would not be paid until Government funds had reached Wetherspoon’s accounts.
In an after-hours statement, the company added that sales in the six weeks to March 8 increased 3.2%, but fell 4.5% in the week to March 15, with Prime Minister Boris Johnson announcing a full lockdown a week later.
Wetherspoon’s said: “The UK Government ordered the closure of pubs on 20 March 2020, from which point the company’s sales have been zero.”
Bosses said they are implementing an “extensive set of measures to protect profit and cash” putting its pubs and hotels into “hibernation”.
New pub openings have been put on hold and are not expected to restart until 2022, with around five a year from then.
Martin’s firm also revealed it has paid suppliers due at the end of March, with 83% paid in full and extended payment terms agreed with a number of larger suppliers.
However, the majority of rents due in March were deferred.
The founder said he will take a 50% voluntary pay cut, along with chief executive John Hutson, other directors have agreed to similar cuts.
He said: “The Covid‐19 outbreak is having a severe impact on the UK pub sector. In these challenging times I would like to thank everyone at the company, its suppliers, landlords, banks and the Government for their support and commitment.
“We’ve had to take significant action to reduce costs, decisions which have not been taken lightly. We look forward to re‐opening our pubs and hotels and welcoming back our teams in the near future.”
READ MORE: Wetherspoons pub vandalised with 'pay your staff' graffiti
On trying to access a loan from the Bank of England’s Covid Corporate Financing Facility (CCFF), the company said it “has made enquiries, but does not believe it is eligible, since it is not ‘investment grade’.
“The company is regarded as investment grade by its two ‘lead banks’ and by its USPP lender, and is charged investment grade rates, we understand.”
Social media users hit out at Martin.
1.
When life returns to "normality", when Wetherspoons open across the UK again, please remember the businesses that stood by their workers - support your LOCAL pubs, and put the likes of Tim Martin and his crap employment practices out 👏 of 👏 business 👏https://t.co/Y5IeZZYch8
— Jacob Campbell (@JacobMCampbell) April 29, 2020
2.
I see Wetherspoons are planning on opening in or around June...I’m planning on visiting Wetherspoons in or around never.
— Banksia Plum (@BanksiaPlum) April 29, 2020
3.
Having worked in one of Tims establishments for 5 years I can confirm that he will absoluely put his profit above the wellbeing and safety of his staff and customers. The man (and I had the utter misfortune to meet him once) is a grade A* bellend #wetherspoons
— Gilby (@Gilbers84) April 29, 2020
4.
Wetherspoons to open in June, I need to ask Tim how many of these he wants printing up. pic.twitter.com/UAXUf2nd4l
— Wefail (@wefail) April 29, 2020
5.
They’ll have at least two less customers, because the missus and I have vowed never to step foot in a Wetherspoons again—the way Tim Martin has treated staff, customers and suppliers is appalling. https://t.co/M9P5qBF8da
— Connor Gurney #StayHomeSaveLives (@connordoner) April 29, 2020
6.
Wetherspoons can fuck right off. From their refusal to act responsibly and threats to stay open, to not paying staff before getting government money, they've acted abominably.
— Samantha Wood (@Samanth84119438) April 29, 2020
I've watched how companies have acted & I know who deserves my custom. Hint: it's not Wetherspoons.
7.
Even when #wetherspoons reopen, I intend to remain selectively #SocialDistancing by making sure I never get within 2 metres of one. Other drinking options will be available.
— Simon Bye 🎪🔶 (@UB5simon) April 29, 2020
8.
You can all socially distance yourselves from #wetherspoons and Tim Martin, with his shitty employment practices.#boycottwetherspoons pic.twitter.com/DzhjZ7OrPG
— Nick (@Showmeurpixels) April 29, 2020
9.
Remember, when the pubs do open again, don't line the pockets of Brexit-weirdo and village bumpkin Tim Martin so that he can continue paying poverty pay and Union-breaking. Use your local pub and boycott Wetherspoons!
— Jay (@ScouseSocialism) April 29, 2020
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