20 Mar 2020 07:00
Electra Private Equity PLC
Update in respect of the COVID-19 situation
As with most businesses the current trading position and valuation of the portfolio companies of Electra Private Equity PLC are being materially impacted by the countermeasures to the COVID-19 virus announced by the UK Government.
The safety and wellbeing of the employees and customers of our portfolio companies is of paramount importance and we are working with the management teams and other stakeholders of each company to ensure that each business, its employees and wider stakeholders come through the developing situation as strongly as possible.
We have put in place a set of measures to manage each of our most impacted businesses and to navigate our way through these challenging times. With the cash balances held across the group, the ongoing support of banking partners and where appropriate, government support, we are confident that each of our businesses will survive and emerge strongly. Whilst we are continuing to develop plans for different eventualities it is too early to determine any longer-term impact.
At TGI Fridays, as the safety and welfare of our guests and teams is our number one priority and following the latest government advice to practice social distancing, we have made the decision to temporarily close all our restaurants from 9pm this evening. This will have an impact on a number of employees and we are working to retain and temporarily redeploy impacted employees to businesses operating in sectors currently experiencing exceptionally high levels of activity across the UK, with a view to them returning for relaunch. We are already working on our relaunch plans which will reflect the acceleration of our actions to make TGI Fridays even better.
At Hotter Shoes, production has been temporarily suspended in our UK based factory however dispatches from our warehouse continue to service our UK and US direct to consumer businesses. The situation in respect of our UK retail estate is under ongoing review and it is likely that phased temporary closures will follow. As with TGI Fridays this temporary shutdown will be used to ensure that Hotter emerges a better business with the acceleration of strategic change.
Whilst Sentinel will be impacted by current events, its business model and winter seasonality reduce the immediate impact.
We welcome the Government's announcement that all retail, hospitality and leisure businesses will be given a 100% business rates holiday for the next 12 months. We will continue to monitor external events and manage the situation closely and will keep the market updated on developments as appropriate.
Neil Johnson, Chairman of Electra Private Equity PLC commented:
'I congratulate and thank our management teams and all staff at both TGI and Hotter for their sensible and timely response to the evolving crisis. We will continue to work tirelessly with our colleagues and business partners to do everything we can to ensure our businesses come through this very difficult situation successfully."
For further information, please contact:
Gavin Manson
Chief Financial and Operating Officer
Electra Private Equity PLC
17 Old Park Lane
London W1K 1QT
Tel: 44 (20) 3874 8300