Foodservice

Compass Group raises $2.425 B from investors in the face of COVID-19 losses

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May 20, 2020

Compass Group, the world's largest catering firm and owner of Canteen in the U.S., has raised £2 billion ($2.425 billion) from investors to shore up its finances as many locations it previously supplied remain largely closed, according to a report in The Guardian.

The fundraising was open to both institutional investors and retail investors through the PrimaryBid website and mobile app.

Compass said it plans to use proceeds to pay down debt and strengthen its balance sheet.

The company reported that its revenues fell by a fifth in March and by nearly a half in April as about half of its operations closed due to the pandemic.

For an update on how the coronavirus pandemic is affecting convenience services, click here.