Pub group launches £350m open offer

Mitchells & Butlers, the struggling pub group, has launched its £350m rights issue this morning (February 22).

The funding raise, which is fully underwritten by majority shareholder, the Odyzeam Group, comes as the company reveals it is burning through up to £35m each month and sales between the end of September and the middle of January slumped by almost 70%.

Mitchells & Butlers closed all of its pubs on December 30 when the third English lockdown was announced.

Phil Urban, CEO of Mitchells & Butlers said: “M&B was a high performing business coming into the pandemic and with the support of our main stakeholders, including the equity injection from this Open Offer, we have every confidence that we can emerge in a strong competitive position once current restrictions are lifted.

“The hospitality industry has done everything that has been asked of it to date and, now that the vaccines are being rolled out and infections are dropping, we are hopeful that pubs and restaurants will soon be allowed to reopen safely so that we can start to serve our customers again.”