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Buzz Bingo to Restructure Retail Portfolio
Buzz Bingo today announces a proposal to restructure its retail estate through the implementation of a company voluntary arrangement (‘CVA’). This follows a period of productive consultation with Buzz Bingo’s various stakeholders, including its landlords, aimed at securing a sustainable long-term future for the business following the outbreak of Covid-19 and resultant lockdown.
Under the proposed terms of the CVA, while the majority of clubs (91) will continue to trade, 26 clubs will close permanently due to what the company expects will be an unsustainable operating environment for the foreseeable future.
Across the rest of the portfolio, Buzz Bingo has been engaged in constructive dialogue with landlords to better align the rents of certain clubs relative to forecast trading. Regrettably, the proposed CVA will potentially impact 573 of Buzz’s c.3400 colleagues across the business, whom Buzz Bingo is committed to supporting at this difficult time.
The challenges facing businesses at this unprecedented time of lockdown due to COVID-19 are well understood. Like many others in the leisure and entertainment sector, Buzz Bingo was forced to close all its clubs across the UK, which have remained closed since Saturday 21 March. It put immediate measures in place: minimising costs where possible, reducing senior management pay and making use of the Government’s furlough scheme for the vast majority of employees.
Despite this, Buzz Bingo’s daily operations and its ability to generate revenues from its retail club portfolio has been severely impacted.
While Buzz Bingo intends to commence the reopening of its clubs from 6 August, it expects that it will take time for footfall to return to pre Covid-19 levels due to social distancing measures and customer confidence to socialise indoors taking time to rebuild, particularly among Buzz Bingo’s customer group.
The management believe the proposed CVA provides the best possible outcome for all of Buzz Bingo’s stakeholders as it looks to secure a sustainable long-term future for the business and its remaining c.2800 employees.
Buzz Bingo’s owner, Caledonia Investments, has indicated its willingness to provide an additional £22m of equity capital (in addition to the £5m that it invested in Buzz Bingo in May, 2020) once the CVA becomes effective. The new equity capital will be augmented with an additional £10m of debt provided by Buzz Bingo’s existing lender.
Chris Matthews, Chief Executive, Buzz Bingo commented:
“The ongoing pandemic has had far-reaching consequences for the entire leisure and hospitality sector and an immediate and significant impact on our business.
Following a thorough review of our options, the proposed CVA will restructure our retail portfolio to ensure we are well positioned for a return to growth, while adapting to the ongoing, challenging environment as we start to reopen the majority of our clubs.
Our lenders are supporting our plans and our owners, Caledonia will be investing into the new structure to further strengthen our future business.
The restructure will, very sadly, impact a number of our colleagues and my priority is to support all those affected and keep them fully informed as we continue with this process. I would like to thank every single one of our colleagues for their continued understanding and commitment over this period.”
Melanie Leech, Chief Executive, British Property Federation (BPF) comments:
“These situations are never easy, particularly now for the retail, hospitality and leisure businesses on our high streets at the sharp end of the Covid-19 pandemic. Property owners, however, need to take into consideration the impact on their investors, including the millions of people whose savings and pensions are invested in commercial property, as they vote on any CVA proposal.
Buzz Group and AlixPartners engaged with the BPF before launching this CVA proposal. This has provided us an opportunity to improve understanding of property owners’ interests and concerns, but ultimately it will be for individual property owners to decide how they will vote on the CVA.”
Buzz Bingo will seek creditor approval of the CVA Proposal which is due on 3rd August. The online business will continue to trade as usual during this period.
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NetBet signs with Flows to boost its Global operations
Leading Sports and Casino operator selects Flows to accelerate innovation and streamline operations
Flows, the leading automation platform, welcomes NetBet as its latest customer. By integrating Flowsâ no-code automation solution, NetBet aims to streamline operations, boost player engagement, and strengthen their market position. NetBet, with a strong presence in regulated markets, offers extensive online sports and casino products. Renowned for its dedication to quality and entertainment, NetBet serves a global audience, consistently delivering exceptional gaming experiences.
Flows exists to make businesses more proactive, productive and profitable by giving them the power of digital automation and the freedom to create without code. By eliminating technical barriers and helping businesses to innovate without constraint, Flows accelerates their growth and enables them to realise their true potential quicker. The platform will provide NetBet with a solution that eliminates development barriers and reduces resource demands allowing them to build new products and features from gamification through to player protection. By implementing this technology, NetBet can efficiently deploy custom promotions, organise tournaments, and handle compliance requirements seamlessly, all in real time. This integration will also enable NetBet to improve operations and rapidly deliver engaging new features to its players.
James King, CEO at Flows, said: âItâs fantastic to see a leading operator like NetBet truly recognise the value add that Flows can bring to the table. From the very start, our mission has always been to simplify and accelerate the delivery of innovation throughout the digital landscape and itâs wonderful to see more and more companies adopting Flows into their tech stacks to do just that.â
Anna Olrik Wallenstein, Head of Operations at NetBet, said: âPartnering with Flows is a key step forward, enhancing our efficiency and allowing us to deliver tailored player experiences faster. This collaboration underscores our commitment to staying a top choice in the online sports and casino markets.â
The post NetBet signs with Flows to boost its Global operations appeared first on European Gaming Industry News.
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Be victorious with VinciSpin, a brand-new online casino launched by Betmen Affiliates
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The post Be victorious with VinciSpin, a brand-new online casino launched by Betmen Affiliates appeared first on European Gaming Industry News.
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Imagine Live Partners with King.rs
Imagine Live the live casino provider launches with Serbian brand King.rs
Imagine Live is thrilled to announce its innovative entry into the Serbia market, made possible through a strategic partnership with the operator King.rs.
The collaboration is aimed at delivering King.rs players a premium gaming experience. Two Blackjack and one Roulette table will be equipped with the latest technology, allowing seamless gameplay and interactive features catering to Serbian playersâ localised preferences.
Hakob Manukyan, CEO of Imagine Live Armenia, commented: âKing.rs is an established brand throughout Serbia focused on delivering exceptional products and gaming experiences by putting the player at the centre of their brand story. Imagine Live is equally committed to providing premium and customised live dealer solutions with bespoke tables and studios for our operator partners to ensure a complete brand experience that players enjoy and return, which drives deeper engagement and revenue opportunities. We look forward to supporting and growing the live dealer experience with King.rs over the coming months.â
Dragan Djordjevic, COO King, said, âWorking with Imagine Live has been an absolute thrill. Their unique mix of live performances, tech, and real-time interactivity is a game-changer in entertainment. Itâs exactly the kind of creative energy we love at King.rs, where weâre all about reimagining live gaming. This partnership feels like a natural fitâtwo teams, both passionate about pushing boundaries and creating something fresh. I canât wait to see what we come up with together and how weâll keep surprising and exciting players around the worldâ.
The post Imagine Live Partners with King.rs appeared first on European Gaming Industry News.
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