Rank Group warns of a £50 million hit if lockdown continues for prolongued period

More than 7,000 staff have been furloughed as the Rank Group moves to batten down the hatches during the coronavirus pandemic.

The furloughed employees will receive 80 percent of their salary, via the British government’s job retention scheme. The company’s directors will take a 20 percent voluntarily pay cut. “With the tremendous support we have received from HM Treasury and HMRC, together with our own mitigations, we have established a robust financial position to address and withstand an extended period of economic turmoil,” said Rank CEO John O’Reilly.

Nevertheless, in a trading statement in April, the operator of the Grosvenor Casino and Mecca Bingo brands said annual underlying operating profit could fall between £48m-58m if its venues remain closed for a prolonged period of time as a result of the COVID-19 crisis.

“Given the uncertainty we face and continued social distancing measures likely to be in place for some time to come, we continue to work to protect cash and to prepare for the reopening of our venues in as safe a way as possible,” O’Reilly continued. He added that despite the significant impact the lockdown on business, the company plans to meet bank agreements by the end of June.

“I am enormously proud of our colleagues and how they have responded to the decisions we have had to take as well as their selfless response and contribution to the national effort.

“We know how important our venues are in many local communities and we’ve answered the call to contribute by stepping up to help those who need it most right now,” O’Reilly concluded.