News – UK – Covid Lockdown: “We’re burning about 500000 pounds a day”

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Lockdown has cost the budget gym franchise PureGym hundreds of thousands of pounds a day, the company’s boss said

“We’re burning about 500000 pounds a day and that’s the average of eight months of closure, “Humphrey Cobbold told the BBC’s Today program

For its 275 fitness studios, this means costs of around 120 million GBP with no income, he says

He is among the executives who will carefully examine Prime Minister Boris Johnson’s plan to reopen the economy

Mr Johnson will later share his final roadmap with ministers before presenting it to MPs and then chairing a press conference at 7:00 p.m. GMT

It is speculated that companies that are classified as non-material may not open until May

While the government’s vacation program paid some of the employees’ salaries, he said his company had still paid some staff costs such as pension contributions and amassed sizable rent arrears

Mr Cobbold says he has been able to raise funds from investors which has helped the business survive, and he insists his business is ready to reopen safely

“The sooner, the better safe operating practices are for us,” he said, “We can make a massive contribution to the health of the nation”

However, he says his and other companies have learned the hard way that government plans are late and can be changed

Ralph Findlay, manager of the Marston’s pub chain, says he would also like to see a way out of the restrictions, since pubs like his are at a loss

“It’s very difficult for a lot of companies to work with limitations,” he told the Today program. “We opened last year – it’s not like we’ve never done this before”

The severity of the closings on pubs “unfortunately inevitably” means that some pubs won’t be able to reopen, he said

“As a sector we haven’t had an income for nine months and we are still incurring costs,” he said

There are economic and social reasons to open pubs, he said. The industry employs millions of people, and Marston generates about £ 500 million a year for the government, including direct and indirect taxes, he added,

On Monday, rival pub chain Mitchells and Butlers also revealed more about the extent of the challenges it is facing

The chain, which has branches like Harvesters, O’Neill’s and All Bar One, said it burns 30-35 million pounds a month

Sales between the end of September and the 16th January was 698% down on the previous year. It said it had agreed to temporarily suspend payments into its employees’ pension funds

Phil Urban, General Manager of the company, said, “M&B has been a high performing company that has gotten into the pandemic and we are confident that if the current restrictions are lifted, we can hold our own in a strong competitive position

“The hospitality industry has done everything it has been asked of, and now that vaccines are in place and infections are falling, we hope pubs and restaurants can reopen safely soon so we can start ours again Customers to serve “

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PureGym, Humphrey Cobbold, Boris Johnson, Lockdown, The Gym Group

News – GB – Covid Lockdown: “We’re burning about 500000 pounds a day”

Source: https://www.bbc.co.uk/news/business-56152833