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Summary
- The FTSE 250-listed pub chain has called upon the UK government to allow pubs to resume operations.
- Pubs and breweries were last on the priority list of the government during initial lockdowns.
The pubs and breweries sector are among the worst hit due to pandemic-induced lockdowns. As we move ahead into the post-vaccine world were lockdowns and restricted are expected to be lifted soon, Tim Martin, Chairman of JD Wetherspoon (LON: JDW) called upon the Boris Johnson government to allow pubs to resume trading operations at the same time as other non-essential shops.
The pub tycoon said that the ailing sector needs to recommence operations at the earliest to protect jobs. The sector has already witnessed a lot of job redundancies. The current year did not start on a good note for the pubs and leisure sector due to the emergence of a new strain of Covid-19 in the UK. The third national lockdown was imposed at the very beginning of the year.
Also read: Demand Grows for Extension of Eat Out to Help Out - RTN, WTB, MAB and JDW Stocks Make Strong Gains
As soon as the chain gets the approval to recommence operations, the FTSE 250-listed pub owner is expected to bring back the 37,000 furloughed staff. Notably, the UK government has piled up a lot of debt which could lead to wrapping up of furlough measures and end of coronavirus job support.
Overall, the pub and leisure industry is a massive contributor to the British economy in terms of taxes and therefore, the government should look ways to reopen the operations alongside non-essential retail. Notably, when the first lockdown was lifted in July 2020, pubs and breweries came last in the priority list of the British government.
Martin said that the pubs are a lot safer than anticipated. Wetherspoon had clocked up more than 50 million customer visits using test and trace since reopening in the summer following the initial lockdown. The pub chain did not record a single case of the awful virus. The British Beer and Pub Association and UK Hospitality groups believe that pubs and restaurants are Covid-secure environments. Notably, the ailing sector has invested millions in deploying safety and hygiene measures.
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The UK has accelerated Covid-19 vaccination programs to stop the spread of the virus. The reopening of the ailing sector along with non-essential retail seems a viable option, as social distancing, awareness, and hygiene have now become a part of one’s lifestyle. Thus, unlike in July 2020, the government must prioritise the reopening of the battered sector.
On the flip side, Weatherspoon has come out with a press release in which it cleared the rumours regarding the acquisition of smaller pubs on the cheap valuation amid Covid-19 crisis by means of equity placing. The company said these rumours are untrue.
Shares of Weatherspoon rose by more than 18 per cent since beginning. JDW share closed at GBX 1,237.00 on 18 February 2021.
