Bill's closed 14 sites after pandemic hit trading

Casual dining chain Bill's closed 14 underperforming restaurants last year as the pandemic forced a review its estate.

The company, which is backed by the Ivy chairman Richard Caring, said it disposed of loss-making sites after facing "significant cash flow pressures".

Bill's reopened 62 sites on 17 May this year and said trading had been strong, buoyed by the public regaining confidence in eating out.

"Management are confident that negotiations on reduced rental costs, as well as other cost reductions, will result in the remaining portfolio of sites outperforming much of the casual dining market," the group said.

Filings for the 53 weeks to 3 January 2021 showed Bill's turnover dropped 51% to £62m, down from £127m the previous year.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was £2.3m, compared to £6.9m in 2019, while gross margin increased to 79% from 76% in the prior year.

Documents stated Caring, who acquired a controlling stake in 2008, had agreed to not call due any loans owed to him and continue to financially support for Bill's for at least another year.

The restaurant chain has also postponed a refurbishment of its sites as a result of the pandemic.

Bill's was founded by Bill Collison as a greengrocer in Lewes, East Sussex in 2001.