Twickenham Wetherspoons expects to remain closed until April

By The Editor 13th Aug 2021

Pub giant JD Wetherspoon says it expects its pubs in Twickenham and across the country to remain shut until April as the coronavirus pandemic continues.

The company reported "zero" sales in 2021 so far, as all of its 872 pubs have remained closed since December 31.

Despite a summer boost from Chancellor Rishi Sunak's 'Eat Out to Help Out' scheme, Wetherspoons says like-for-like sales dropped more than a quarter in the 15 weeks to November 8.

Sales have been hit since then by the introduction of stricter lockdown measures, including the November national lockdown, the introduction of Tier 4 in London on December 20 and a new national lockdown which began in early January.

The lockdown means all pubs in the county, including the William Webb Ellis on London Road, may only offer takeaway services.

Other restrictive measures which pubs and bars have adhered to include a 10pm curfew, a requirement to order all food and drink at the table and the mandatory use of face masks when moving around inside pubs.

Before reopening last July and August, Wetherspoons spent £13.1 million nationally on implementing measures aimed to keep its pubs covid-secure.

A report presented this week to City investors said: "Assessments were carried out to ensure the risk of transmission of the virus was mitigated in all aspects of the pubs' operation.

"There were approximately 50 million customer visits registered using the 'track and trace' system, and there have been no incidents of an outbreak among customers, as defined by the health authorities, reported to the company, at any Wetherspoon pub."

The government-enforced closures have forced Wetherspoons to place more than 99% of its 37,674 staff on furlough. Staff numbers have also declined from 43,741 last March, with 378 employees at the Head Office and airport sites also made redundant.

It was criticised in March after chairman Tim Martin told employees the company did not have the money to pay them and suggested they should take other work if offered. Days later the company said it would pay up to 80% of wages.

During the current closure period, Mr Martin's and non-executives' pay has been reduced by 50%, and the chief executive's by 25%.

Wetherspoon's had planned to draw customers back in the New Year with cut prices but instead had to close all its pubs when most of England was plunged into Tier 3 and Tier 4, before the current lockdown started on January 5.

The company said: "The duration of the current lockdown and ongoing restrictions is uncertain at this stage. The company's current assumptions are that its pubs will remain closed until the end of March 2021."

Wetherspoons has planned for a range of scenarios, including one where pubs remain closed until May. It does not expect trade to return to pre-pandemic levels until at least 2022.

Even so, without the capital fundraising it is currently undertaking, the company estimates that it has enough liquidity to last until the end of the current financial year.

Mr Martin said: "After a number of false starts, the hospitality industry generally anticipates a return to more normal trading patterns in the spring and summer, as a result of the introduction of a mass vaccination programme."

     

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