Mitchells & Butlers said today it was exploring an equity capital raise, as a new national lockdown shut the British pub operator's sites across England, though it added that no decision had been made yet on its timing, size or terms.
The pub operator has already cut 1,300 jobs, suspended dividends and sought debt waivers to ride out the crisis.
It said today that its board unanimously supported a capital raise.
Its chief executive Phil Urban also urged the UK government to "better understand" the huge impact the lockdown restrictions were having on the hospitality sector.
"The Job Retention Scheme is temporarily protecting some employment, but there is a real and pressing need for support for businesses themselves if we are to return to being the vibrant sector and important employers that we were," he said.
The owner of All Bar One and Toby Carvery pubs and restaurants said sales plunged 67.1% for the 14 weeks ended January 2, 2021.
M&B said that progressively tighter restrictions in December across UK and Germany led to an ever-smaller number of sites open and significantly reduced sales through the important festive trading season.
British Prime Minister Boris Johnson ordered England into a new lockdown earlier this week to contain a surge in Covid-19 cases that threatens to overwhelm parts of the health system before a vaccine programme reaches a critical mass.
The company, which has again reduced spending and operating costs due to the new lockdown, said it had a monthly cash burn of £35-40m before a £50m debt service payment per quarter.
