Rank furloughed nearly 90% of employees
Casino and bingo hall operator Rank Group Plc. has furloughed nearly 90% of its UK employees. The decision was impacted by the closure of venues due to the COVID-19 lockdown. The 7,000 out of 7,600 employees who have been impacted will receive 80% of their salary, according to the job retention scheme. The directors of Rank Group volunteered to cut their pay by 20%.
Rank suffered a 4% decline in like-for-like net gaming revenue for three months through March, while total gaming revenue went up by 5%. If the venues remain closed for a prolonged amount of time, the group’s annual underlying operating profit could fall between £48m ($59.8m) and £58m .
Chief executive John O’Reilly said: “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.”
Rank stated that the impact the lockdown had on the business is significant, but the group maintains its responsibilities and plans to meet bank agreements by the end of June. O’Reilly remains optimistic that with support from HM Treasury and HMRC, the group can “withstand an extended period of economic turmoil”.
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