Join our community of smart investors

Hollywood Bowl primed for August reopening

Following the government’s announcement of the next phase of easing lockdown restrictions, the group will open all of its sites in England next month
July 17, 2020

Prime minister Boris Johnson has unveiled the government’s plans for further relaxations of the Covid-19 lockdown restrictions, paving the way for more businesses to resume activity. Following the reopening of shops, restaurants and pubs earlier this month, gyms and indoor sports facilities will be allowed to throw open their doors from 25 July. If the prevalence of coronavirus cases remains at or below current levels, the government has given the green light for most remaining leisure centres – including bowling alleys, skating rinks and casinos – to reopen from 1 August.

IC TIP: Buy at 157p

On the back of that news, Hollywood Bowl (BOWL) has pounced. With the pandemic forcing it to close all of centres in mid-March, the group plans to reopen all of its 54 locations in England from the beginning of August, with sites across Scotland and Wales primed to get back up and running as soon as they get the nod from the devolved administrations. Those itching to knock down some pins will be able to pre-book lanes from today.

Hollywood Bowl had guided to a £1.2m monthly cash burn while its locations remained closed, so the ability to reopen – and soon – is certainly welcome news. It said it will now begin bringing workers back from furlough and training them to implement its new “Covid-secure operating bowling protocols”. These measures will likely push up costs as it has had to adapt its spaces, spend on personal protective equipment (PPE) and arrange additional cleaning. But that seems to be the normal price of being able to do business in the post-pandemic world.