Safestay PLC - Employee Options Scheme and Hostel Closures
("Safestay" or the "Company")
Temporary Closure of 8 hostels and Share Option Scheme
Safestay (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, announces its decision to temporarily close eight hostels reducing the available bed stock of the Group to 45%, trading from eight hostels. Simultaneously, all Directors, head office employees and senior management will either take a 25% pay reduction or choose to reduce salaries by 40% and receive share options in lieu. Importantly, together with other associated cost reductions, this means that there is no change to the Company's forecast cash position, announced with the trading update on
Localised lockdowns due to Covid-19 combined with entering the low season for the hostel market has led to the decision to temporarily close eight hostels. With the
New Share Option Scheme
Following the end of many of the government support schemes, directors, head office and senior employees are being offered a share option scheme in lieu of lost salary, if they opt for a 40% reduction in salary. The alternative is for them to accept a 25% reduction in salary. Early indications from our team is that the majority are choosing the new share option scheme.
In light of the ongoing challenging trading conditions, further discussions with landlords, together with existing rent reductions and deferments, have resulted in a 50% reduction in rental payments between 1 August and
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014.
Safestay plc Tel: +44 (0) 20 8815 1600
Liberum (Nomad & Joint Broker) Tel: +44 (0) 20 3100 2000
Novella Tel: +44 (0) 20 3151 7008
Tim Robertson / Fergus Young
Safestay (AIM: SSTY) is the owner and operator of an international brand of contemporary hostels.
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