(Reuters) – Restaurant Group explained on Wednesday it was scheduling to raise 175 million kilos ($242.7 million) by a share sale after the Frankie & Benny’s operator posted a even bigger reduction due to a strike to its business from Britain’s latest round of lockdowns.

The business posted an adjusted pre-tax decline of 87.5 million lbs . for the calendar year finished Dec. 27, in comparison with 47.9 lbs . a calendar year earlier and said its in the vicinity of-expression outlook remained unsure owing to limitations.

Cafe Team has permanently shut 250 places to eat and minimize about 3,000 positions, highlighting the troubles in the hospitality industry.

“The Money elevate announced currently, alongside the financial debt re-financing introduced previous week, represents the past essential stage in our re-structuring course of action,” Main Executive Officer Andy Hornby explained.

Though all of its sites are shut for dine-in, the corporation reported its shipping and takeaway income at Wagamama far more than doubled from pre-pandemic ranges for the 4 weeks finished February and ended up up 5 occasions for its leisure sites.

The organization, which experienced final yr elevated about 57 million lbs to weather conditions the crisis, mentioned it would elevate fresh resources by issuing 95.9 million new shares to investors at a rate of 100 pence for every share.

It will also issue 79.7 million new shares to existing shareholders by offering them 5 new shares for each and every 37 current shares, also for 100 pence per share.

Reporting by Tanishaa Nadkar in Bengaluru Enhancing by Anil D’Silva