Exclusive – Casual Dining Group launches accelerated sales process after approaches: Casual Dining Group (CDG), the Bella Italia, Café Rouge and Las Iguanas operator, has launched an accelerated sales process after receiving multiple expressions of interest. Propel understands the interest has come from a mix of potential buyers, including trade players and investment firms, and has been for the whole group. There is understood to be no timeline on the process, which is being run by AlixPartners. The interest in the James Spragg-led business comes just over a week after it filed a notice of intention to appoint an administrator ahead of a restructuring process, with all options being considered including company voluntary arrangements for individual brands and a possible administration for one. It is thought such a restructuring process would still have to be part of any deal going forward, which would see CDG close a number of its site across its three brands. It is hoped a successful deal would help to preserve the jobs of the majority of the group's circa 6,000 staff. Prior to the lock-down, CDG's performance was understood to have improved, with Las Iguanas in growth and Bella Italia posting “solid” numbers. It was understood after a period of underperformance that Café Rouge had also started this year in growth. A CDG spokesman said: “On 18 May, as a protective measure, the company filed a notice of intention (NOI) to appoint an administrator. This is an unprecedented situation for our industry and, like many other companies across the UK, we have been working closely with our advisors to consider our next steps. While in the protective period following the filing of our NOI, CDG has received strong expressions of interest from interested parties, both trade buyers and investors, regarding a potential sale of the business. This is one of a number of options that we are considering as we formulate a plan for the company. We recognise this is a very difficult time for our employees and we will do everything we can to support them through this period of uncertainty.”

Young's updates on financing and dividend: London-based pub retailer Young's has reported all its lending banks have now replaced the company’s financial covenant tests at June, September and December this year and at March next year with an additional monthly £20m available liquidity test through to and including June 2021. The company stated: “The banks have also waived any technical ‘cessation of business’ breach resulting from the group’s pubs being closed due to the coronavirus pandemic. The company has now entered into its new £50m syndicated term loan facility with NatWest and HSBC. This facility has been drawn and used to repay in full the £50m syndicated facility with Royal Bank of Scotland and Barclays that was due to expire in March 2021. The company has also now entered into its new £20m bilateral revolving credit facility with NatWest. The company does not now intend to draw on this facility but instead retain it as available liquidity to help the company meet the liquidity test referred to above. This new facility matures next May, and the company has the option early next year to request an extension of its maturity date by six months and can do the same again later next year. In deciding whether to make either of these requests, the company’s board will take into consideration the fact no dividend can be declared, made or paid while any part of this facility is drawn and that this facility, if undrawn, will be cancelled if any dividend is declared, made or paid. In view of the ongoing closure of the company’s pubs, the expected lower levels of trade when they reopen and the terms of the new revolving credit facility, the company will not be paying an interim dividend for the current financial year ending 29 March 2021. The company’s board is very mindful of the importance of dividends to Young’s shareholders and intends resuming dividend payments as soon as is practicable, but no decisions have been made about when that will be.”

Eustice – pubs with beer gardens and outdoor restaurants likely to be first hospitality venues to reopen, but not until July: Environment secretary George Eustice has confirmed pubs with beer gardens and outdoor restaurants are likely to be the first venues in the hospitality sector to reopen – but it won’t be until July. He told Sky News: “The sectors that are going to have the greatest challenge getting back to work, which we recognise – and I’m sure the chancellor recognises this too – are the hospitality sector and some of those other ticketed venues, in particular cinemas and theatres. Restaurants and pubs face a challenge getting back in to operation. And that is why we won’t be loosening the restrictions on them until at least July and even then it is likely that in the case of pubs and restaurants it will begin with beer gardens and outdoor areas only.”