MONTREAL — As of the date of this release, MTY’s network had approximately 2,100 restaurants temporarily closed while the rest of the network is typically operating in a reduced capacity. Most of the company’s corporate restaurants are currently closed, with the exception of those operating under the Papa Murphy’s brand.
In response to the impact of the global pandemic on MTY’s business, the release states the following actions have been taken in an effort to preserve capital resources:
- The quarterly dividend that would normally have been paid in May 2020 is suspended
- The company has temporarily laid off more than half of its global workforce
- The company’s leadership team has voluntarily reduced their base salaries on a temporary basis
- Capital and operational spending has been reduced to a minimum
- The company’s Annual General Meeting is scheduled to be held on May 1, 2020 under a hybrid format
“Ensuring a safe and healthy working environment for our workforce, as well as helping our franchisees and business partners during these difficult times, is a primary focus for MTY and we continue to implement and enforce additional precautionary health-and-safety measures,” says Eric Lefebvre, Chief Executive Officer of MTY. “MTY is extremely thankful to all its business partners, financial institutions, landlords and the authorities that are for the vast majority of them making significant sacrifices to help MTY and its franchise partners weather the storm and bounce back when the situation goes back to normal.”