Cut price bump chain JD Weatherspoon (LON:JDW) saw its shares slide on Friday, and announced that 42% of UK real estate will remain closed from next week on condition of new tier restrictions.
Of the outlets, 13 UK pubs and 51 in Wales are classified as Tier 1 or Tier 1. Meanwhile, 435 branches, including 17 in Scotland, are tier 2. This means that customers need to use meal contracts to get their hard-earned pints.
Finally, around 366 pubs remain closed, with 315 in the UK and 51 in Scotland and Northern Ireland within the tier 3 levels. Wetherspoons said the decision to keep these branch doors closed was taken as the decision to keep these branch doors closed was “not likely to be a realistic option.”
Tim Martin, founder and chair of the bold Weatherspoon, has responded to the closure and implementation of the updated Tier System pub.
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“The company ran a campaign that was introduced when pubs reopened in July to return to rules agreed between the pub industry, civil servants, local governments and health authorities.”
“These rules significantly reduced the capacity of pubs and provided strict social distancing and hygiene standards, but difficult to do so allowed pubs to pass. It’s very unfortunate that more regulations have been introduced that effectively shut down half of pubs. The reality is that the government has expanded the form of lockdowns on the country’s large scale through stealth.”
“As the testing and tracing system has become clear, there was no evidence of widespread coronavirus infection in the pub. Councillor Ian Ward, leader of the Birmingham City Council, said recently:
“The data we have shows that infection rates are rising mainly due to social interactions, especially private home gatherings. There are strict measures at shops and hospitality venues to ensure that they are safe for the community, but it’s much easier to inadvertently pass the virus in people’s homes.
Following the update, Wetherspoons shares sank at 2.11%, 1,111.00p to 11/20/27. The price is below the post-lockdown high of 1,201p, but the analysts’ target price is about 3% below 1,080p per share.
The company currently has an AP/E ratio of -12.41, but analysts have a consensus “hold” stance on equities, with the MarketBeat community giving it a 72.51% “underperformance” rating.
