Coronavirus: Pub stocks plunge on ‘stay home’ advice
Pub stocks plummeted this morning following government advice for the public to avoid pubs and restaurants to slow the spread of coronavirus.
The hospitality sector yesterday branded the government’s decision to urge people to stop going to venues without offering any additional help for businesses “catastrophic”.
Pub operator Marston’s share price dropped more than 28 per cent this morning, JD Wetherspoon, JD Wetherspoon suffered a 11.32 per cent share price slump and Fullers’ share price was down more than four per cent.
City Pub Group, which this morning announced it will cut jobs, saw shares plunge 26.83 per cent. The upmarket pub chain will slash jobs at head office and on site, review opening hours and cut back on other costs such as Sky TV.
Yesterday Boris Johnson stopped short of forcing pubs and restaurants to close, although many will be forced to due to the sharp decline in footfall, which could prevent many businesses claiming on their insurance.
UK Hospitality chief executive Kate Nicholls said the decision was “catastrophic” for the industry.
Chancellor Rishi Sunak is today expected to announce further financial measures to help struggling businesses, with airlines expected to benefit.
The hospitality industry is calling for rent cuts, business rates holidays and immediate financial support for staff.
Business select committee chair Rachel Reeves said today: “The announcements yesterday…are obviously deeply concerning for people who work in those sectors of the economy or run their own businesses in those sections of the economy, especially because the government at the same time didn’t say they had to close.
“Many of them at the same time are worried about being able to draw down on their insurance. “
She added: “The government need to step in to ensure that these businesses who, through no fault of their own, are going to find they have no customers and no business in the next few weeks and potentially months, that they supported.
“And that is now critical because many of these businesses will struggle to get through just a few weeks without any custom.”
She added that the chancellor this evening should announce a temporary income replacement scheme for people who are “not able to work because of sickness, caring responsibilities or indeed because there is no demand in those industries at the moment”.