Famous Brands (FBR) – Further GBK impairments

FBR announced on 2 April that its board has taken the decision to no longer provide further financial assistance to the GBK business. As such, the likely outcome may be to fully impair its investment in GBK. In our view, it is unlikely that consumers’ spending behaviour will recover instantly once restaurants resume trading. We believe the impact of the Covid-19 pandemic on GBK could be dragged out for a longer period of time.