Success Story
| Region/Nation | London |
|---|---|
| Programme | Coronavirus Business Interruption Loan Scheme (CBILS) |
| Partner |
Despite being consistently profitable, Red Oak Taverns saw its income streams severely curtailed once the Government’s shutdown of hospitality businesses began. Needing cashflow to maintain its operations and support its tenants, the pub company turned to the Coronavirus Business Interruption Loan Scheme (CBILS).
Read what it had to say in this CBILS case study.
British Business Bank: Can you tell us what your organisation does?
Mark Grunnell, chief executive of Red Oak Taverns: We own 180 freehold pubs around the UK. We lease these pubs to lessees and tenants who operate the pubs on a day-to-day basis.
The coronavirus has affected a huge number of businesses across the UK. What problems were you facing as a result of the outbreak and what made you apply for CBILS support?
Our business is inherently profitable. However, the Government’s closure of all hospitality businesses in the UK meant that our income streams were severely curtailed, while at the same time we needed to support our tenant partners with rent concessions and other support packages.
How long did the application process take? Did you need any support?
It took six weeks. We needed no more than the usual legal counsel we’d use when applying for any borrowing facility.
COVID-19 is an unprecedented event, and to continue to service our own suppliers and cashflow needs, and to provide meaningful concessions to our tenant partners to make sure they have the best possible chance of survival, we needed CBILS support. - Mark Grunnell chief executive of Red Oak Taverns
What advice would you give to other businesses that are applying for a CBILS loan?
Be very clear as to what you need and why you need it. Generate cashflow forecasts with flexed outcomes, and make sure that you cover off the maximum downside. Communicate this clearly to your lender.
How has the CBILS loan helped your organisation to weather the outbreak? And what might have happened if you hadn’t received it?
Red Oak Taverns is over eight years old and has demonstrated year-on-year profitability until now. COVID-19 is an unprecedented event, and to continue to service our own suppliers and cashflow needs, and to provide meaningful concessions to our tenant partners to make sure they have the best possible chance of survival, we needed CBILS support.
At a time when there was no certainty as to when hospitality businesses would reopen, and with the risks of second lockdowns and uncertainty over levels of trading after the reopening, we could’ve run out of the most valuable commodity needed for our business to survive – cash.
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