Wagamama owner secures financing as firm burns through £5.5 million per month in lockdown

Naomi Ackerman
·1 min read
<p>The Restaurant Group is behind both Wagamama and Frankie & Benny’s (Rex/Shutterstock)</p> (Rex/Shutterstock)

The Restaurant Group is behind both Wagamama and Frankie & Benny’s (Rex/Shutterstock)

(Rex/Shutterstock)

Wagamama owner The Restaurant Group revealed on Monday that it is burning through £5.5 million a month in lockdown as the firm announced it has secured new financing to see it through the pandemic.

TRG, which is also behind the Frankie and Benny's chain, said in a trading update that it has secured £500million in new debt facilities, and that management plans to throw open doors at all 400 of the group's "viable" sites within two weeks of indoor dining restrictions lifting through an "accelerated reopening plan".

The company said it had seen "strong recent trading" for delivery and takeaway operations across over 200 of its Wagamama and wider leisure estate, with overall delivery and takeaway trading at its venues up to around five times pre-pandemic levels.

The firm, which has slashed 3,000 jobs and permanently closed 125 sites since the pandemic hit, said its net debt was around £340 million at the end of 2020.

TRG has secured a £380 million loan facility until 2026 as well as a £120 million revolving credit facility until 2025.

Shares were up 7% in early trading.