Wetherspoons plunge into biggest ever loss from Covid lockdowns

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JD Wetherspoons posted its biggest ever loss as the company struggled hard as Covid-19 restrictions hit the sector.

In the 12 months to 25 July, the pub chain sank a pre-tax loss of £154.7m, compared to a loss of £34.1m a year earlier. Sales also fell from 1.26 billion pounds to 772.6 million pounds.

This is only the third year that the company has recorded a loss in its 37-year history.

Founder and Chairman Tim Martin said he remains hopeful for the future and customers have begun to return since lockdown restrictions eased in the summer.

Mr Martin criticized the government’s handling of the bar sector during the pandemic, describing the use of the closure as a “threat to civil society and democracy”.

Chairman Wetherspoons is now in a race to fill vacancies in distressed areas.

“On average, Wetherspoon received a reasonable number of applications for vacancies, as evidenced by the increase in staff numbers, but some areas of the country, particularly ‘staycation’ areas in the West Country and elsewhere, have found it difficult to attract staff,” he said.

“During the pandemic, the pressure on bar managers and staff has been particularly acute, with a number of pub closures and reopenings nationwide and regionally, often with little warning, each resulting in different regulations.”

Although bars were eligible for government support under the furlough scheme, they have been one of the hardest hit sectors in the pandemic, facing lengthy closures and rule changes.

Wetherspoons have also been affected by the ongoing shortage of heavy truck drivers which has led to supply chain issues.

Martin has not commented on the shortage or any effect it has on the Wetherspoons, nor has the Brexit supporter tried to downplay the links between the heavy vehicle shortages with the UK leaving the EU.

Instead he questioned the government’s use of lockdown restrictions: “The greatest threat to the bar industry, as well as, among other things, to restaurants, theaters, cinemas, airlines and travel companies, relates to the precedent set by the government for the use of closures and severe restrictions imposed under emergency powers.”

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