The Restaurant Group, behind brands including Wagamama and Frankie & Benny's, has unveiled a survival package incorporating an extended banking facility, pay cuts for its executive team and changes to the board.
Chief executive Andy Hornby has taken a 40% pay cut, reflecting the policy for senior team members who have not been furloughed since the coronavirus outbreak forced the closure of all restaurants, while chief financial officer Kirk Davis has taken a 20% cut. Both executive directors have also volunteered to forgo their 2019 bonuses.
Non-executive directors have also agreed to reduce their fees by 40%. The arrangements will be reviewed on 1 July. The size of the board has also been reduced, with Mike Tyr stepping down as a non-executive director and chairman of the renumeration committee.
Hornby said: "These are unprecedented times for our business and our sector. Against this backdrop we have taken decisive action to improve our liquidity, reduce our cost base and downsize our operations. I would like to wholeheartedly thank all of my The Restaurant Group colleagues for their extraordinary understanding and commitment during this period."
The casual dining group's credit extension has seen £15m added to Wagamama's credit facility, taking it from £20m to £35m.