Wetherspoons losses reach record high
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For the third time in the history of the company, Wetherspoons is facing down an annual loss. These losses are the worst in the history of the company.
With the pandemic’s impact on hospitality across the globe, it is easy to understand why this has happened, but how extensive is the damage?
The total losses for the company are quite significant. According to reports, the total losses in the 12 months leading up to 25 July 25 have amounted to around £154.7m pre-tax. This is a large drop for the company, especially considering the losses for the previous period were only £34.1m.
This jump in losses shows just how heavily many companies within the hospitality sector have been hit over the last 12 months.
Many people will be wondering what caused this severe profit loss. The most obvious cause is the impact of the nationwide lockdown on bars and pubs. With an inability to earn money, it is easy to see why Wetherspoons has been hit with such a large profit loss.
But could other factors be at play? During the peak of the pandemic, many people vowed to boycott the company following the treatment of staff. Could Wetherspoons be seeing the repercussions of the treatment of staff during the pandemic?
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It is pretty hard to gauge this, but it wouldn’t be surprising if at least some of the losses could be attributed to a boycott. The impact of lockdown restrictions, however, is certainly a key factor in the losses.
Despite the profit plummet, Wetherspoons chairman Tim Martin is maintaining faith that the company will recover from these losses claiming he is “cautiously optimistic” for the future of the company.
Following two years of recorded losses, the next 12 months will certainly be extremely important for Wetherspoons. The company will be striving to return to profits now that hospitality is back in full swing.