Revolution Bars Group has furloughed 2,775 of its staff (98% of the group’s workforce) by accessing the UK Government’s Coronavirus Job Retention Scheme, enabling future retention of employment for these employees whilst delivering a considerable payroll saving.
The chief executive, chief financial officer and non-executive directors salaries have been reduced by 50% and the company has implemented significant salary reductions for senior employees remaining in work.
All PAYE and VAT payments have been suspended for three months from 18 March and rent reductions have been negotiated, as well as contract extensions with key suppliers.
The actions have reduced the business’ weekly running costs to £400,000, on top of which it has extended its debt facility from £21m to £30m until 31 August 2020.
Natwest has also agreed to support the company by increasing its overdraft facility to £30m
And toto waive all financial covenant tests at March and June.
Chief executive Rob Pitcher said: “Prior to this crisis, we were delivering positive like-for-like sales, had significantly reduced our debt position, were generating strong capex returns, and were on track to meet our full year profit expectations.
“We welcome and are delighted with the additional support from Natwest at this difficult time. They have acted as a true partner to our business and this decisive action has enabled us to be another step closer to being well-positioned to emerge from this crisis.
“We are also very grateful to those other stakeholders, including our employees, suppliers and certain landlords who have approached this crisis in a similar manner, helping to secure the future of this great business.
“However, there is still more which needs to be done to ensure the protection of the 3.2 million jobs in our sector along with the £39 billion of direct tax receipts paid annually to the UK Government.
“Specifically, this includes more support in connection with property related costs during this enforced closure period and beyond, including support for landlords themselves and we encourage the government to take swift action in this respect.”