Revolution Bars has confirmed that it’s “actively exploring all the strategic options available” following reports that the group was looking to sell part of its portfolio.
Sky News had reported the London-listed pub group has held talks with investors about an “emergency fundraising” campaign to reduce risk of insolvency, which will involve the closure of approximately 20 of the group’s worst-performing bars across the Revolution, Peach Pubs and the Revolucion de Cuba chains.
The group also purportedly approached investors in a cash call to raise £10m, more than its market capitalisation of less than £7m.
A company statement said: “Following a period of external challenges which have impacted the company’s business and trading performance, the board is actively exploring all the strategic options available to it to improve the future prospects of the group. These include a restructuring plan for certain parts of the group, a sale of all or part of the group and any other avenue to maximise returns for stakeholders.
“It added: “These include a restructuring plan for certain parts of the group, a sale of all or part of the group and any other avenue to maximise returns for stakeholders. The company also confirms it is currently engaged with key shareholders and other investors including Luke Johnson in respect of a fundraising.”
A substantial number of jobs will be put at risk by the closures, which are, according to reports, expected to be concentrated on the Revolution-branded chain.
An estimated 2,500 people are currently employed by the group, which floated in London for the second time in 2015.
The news comes as yet another blow for the hospitality industry. At the start of the year Rekom UK, the country’s biggest nightclub owner, called in the administrators.
