Revolution Bars floats closing 18 sites under overhaul plans to avoid ‘liquidity pressures’
Revolution Bar could close 18 sites as part of company overhaul
PA
Revolution Bars could close 18 of its bars as part of a company overhaul, the parent company has said.
Revolution Bars Group has cited the ongoing cost of living crisis and the regular train strikes as impacting footfall from it younger base of customers.
According to the firm, it was also exploring potentially putting itself up for sale in lieu of a group-wide restructuring.
The firm, which also owns Peach Pubs and Revolucion de Cuba, said it was thinking seriously about its future after running into financial difficulty.
Earlier this month, Revolution Bars Group’s shares were suspended from trading on the London Stock Exchange following a delay to its financial results being published.
However, the company’s share price skyrocketed by 40 per cent earlier today after the suspension was lifted.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Britain's high streets have been hit by a wave of store closures PAThe group outlined plans to raise up to £12.5million through a fundraise which it hopes will help the business return to profit.
It has the support of businessman Luke Johnson, a well-known investor in the country’s hospitality sector.
Mr Johnson is known for being the former chairman of popular restaurant chains such as Pizza Express and Giraffe.
As well as this fundraising effort, a cost savings plan will be implemented to improve Revolution Bars Group’s business prospects.
This would involve offloading its loss-making sites, which expects to include 18 bars with six of those already being closed.
The hospitality group is also set to be awarded about £6.9million in additional support from its secured creditor.
In recent years, the restaurant and pub chain has been vocal about the financial challenges the business has faced.
This has primarily resulted from the impact of the Covid-19 pandemic, rising inflation and a wave of staff shortages.
LATEST DEVELOPMENTS:
The pub chain is exploring a new structuring plan to improve its business prospects
GETTYIf the company does not go ahead with a fundraise or making cost savings from restructuring, Revolution Bars expects to face “liquidity pressures” in 2025.
Furthermore, the firm is considering a sale which it said could be more beneficial for shareholders than the proposed restructure.
As it stands, Revolution Bars Group is not in any discussions with a potential suitor to takeover the business.
On top of this, the business emphasised there can be no certainty that an offer will be made in the future.