Bar and gastro pub operator Revolution Bars (REVB) has proposed a restructuring of the group, which would involve the shuttering of several sites, rent reductions, and an equity raise of up to £12.5m featuring new and existing investors.
Revolution Bars said its restructuring plan would affect Revolution Bars Ltd and would see it exit the leases of 18 loss-making sites and impose a rent reduction on a further 14 sites, which the company said would enable it to return to profitability at a sustainable level.
To fund the planned restructure and provide additional working capital, a fundraising is proposed to raise up to £12.5m.
Group like-for-like sales for the four weeks to 31 December were up 9.0%, the company’s best festive period since 2019. Like-for-like sales for the first half, including New Year’s Eve, were down 2.8%.
Rob Pitcher, chief executive of Revolution Bars Group plc, said: “Following a period of macro-economic and external challenges which has impacted both the company and disproportionately its Revolution brand’s young customer base and consequently our trading, the board has had to consider all strategic options for the Group to improve its future prospects and provide the best outcome for all stakeholders.
“After much consideration, the board concluded that a plan to restructure the business, together with a fundraising of up to £12.5 million and to simultaneously launch a formal sale process would deliver the best value.
“We are driven by the imperative to deliver to stakeholders a business which is fit for purpose in today’s environment, better balanced and financed in a way to provide a sustainable long-term future for the Group which, in time, has the opportunity to grow and flourish again.”
Revolution said the restructuring plan would “primarily impact the Revolution-branded sites” listed under the Plan Company, which holds 38 Revolution branded sites, six closed sites, one Playhouse site and one Founders & Co site.
Last month, the company reiterated it is “actively exploring all the strategic options available” following press speculation that it plans to close a quarter of its sites.
The hospitality group closed eight bars across England in January after blaming the cost of living crisis for hitting the spending power of its younger customers.
