Wagamama and Frankie & Benny’s owner The Restaurant Group (TRG) is seeking a £175 million investment to shore up its finances after the business was struck hard by the Covid-19 coronavirus pandemic.
The London-listed hospitality firm revealed that total sales dived by 57% to £459.8 million in 2020 after its sites were forced to close their doors for large periods.
It added that its short-term outlook remains “uncertain” while lockdown restrictions remain in place.
Andy Hornby, chief executive officer of TRG, said: “The Covid-19 pandemic has presented enormous challenges for our sector but the TRG team has responded decisively to restructure our business whilst preserving the maximum number of long-term roles for our colleagues.
“TRG is operationally a much stronger business than 12 months ago.
“The capital raise announced today, alongside the debt refinancing announced last week, represents the last important step in our restructuring process and provides TRG with the long-term flexibility to invest in growing our business.
“Whilst the sector outlook remains uncertain, and we are mindful of continuing restrictions across the UK, we are confident that the actions announced today will allow us to emerge as one of the long-term winners.”
Earlier this month TRG said it was burning through £5.5 million each month its venues remain shut and that it had secured a new loan to shore up its finances.
Shares in the company soared higher on Monday morning after it revealed £500 million in new debt facilities.
