Dave and Buster's has put a stop to all new store construction and blocked director payments for the remainder of 2020 in reaction to the coronavirus pandemic.
Dividend payments have been suspended and discussions are being pursued with landlords and vendors to “reduce expenses, extend payment terms and obtain other payment concessions” the company stated while announcing improved net income for the fourth quarter of 2019.
All of the 15,000 hourly workers at Dave & Buster’s have been placed on temporary furlough while stores are shut, with management and corporate staff down by 90 per cent and the senior leadership team halved.
In Q4 2019, total revenues increased by 4.6 per cent to US$347.2m, from $331.8 million in the previous year. The number of stores increased to 136 from 121 and net income totalled $25m, against previous net income of $29.m in Q4 2018. EBITDA increased by one per cent to $72.9m from $72.1m.
CEO Brian Jenkins, said: “In recent weeks, the COVID-19 pandemic has created challenges unlike anything our company, industry, or the US economy has previously experienced, resulting in the temporary closure of all of our stores. We have thoughtfully and quickly implemented a comprehensive plan to help mitigate the impact of this pandemic, and we are now working to enhance liquidity and preserve store restart capabilities so that we can safely reopen as soon as local conditions allow.
“Our first priority remains the health and safety of our team members, guests, and each of the communities in which we operate. Our hearts go out to all of our team members and guests who are enduring so much through this crisis.”
