UK pub operator Mitchells & Butlers secures £100m CLBILS loan
UK pub operator Mitchells & Butlers has been granted £100 million of additional funding from HSBC UK and Santander UK as part of the UK government’s Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The funding will help Mitchells & Butlers through the disruption caused by COVID-19 and help to save the jobs of more than 45,000 employees.
HSBC UK said that the funding was equally split between it and Santander UK, and is one of the first CLBILS deals since the UK government updated the scheme in May to allow loans of up to £200 million.
Mitchells & Butlers, which is among the largest operators of restaurants, pubs, and bars in the UK, had its 1,700 locations closed temporarily close at the beginning of the COVID-19 lockdown. Included in these are its Harvester, Toby Carvery and All Bar One sites.
Akhil Shah – Relationship Director at HSBC UK said: “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.”
According to HSBC UK, the loan will ensure Mitchells & Butlers to continue operating while it gears up to reopen its sites in line with the recommendations of the government.
Tim Jones – CFO at Mitchells & Butlers 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.”