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Revolution Bars close to finalising rescue fundraising

todayApril 8, 2024 2

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Revolution Bars close to finalising rescue fundraising

Revolution Bars is close to finalising an emergency fundraising that would provide a stay of execution as it cobbles together plans that will result in the mass closure of its venues.

Sky News understands that Revolution, whose shares were suspended last week after it said it was unable to publish its interim results, is hoping to announce as early as Tuesday that it has secured roughly £10m equity funding commitment from investors including Luke Johnson, the leisure entrepreneur.

The cash call would pave the way for the cash-strapped operator of bar chains including Revolucion de Cuba to progress a restructuring plan to close sites and cut rents and an accelerated sale process.

The multi-pronged rescue deal, revealed by Sky News last month, would also pave the way for the publication of Revolution’s delayed results and the resumption of trading in its shares.

Its stock has slumped by over 85% over the last 12 months, and it now has a market valuation of little more than £1m.

Revolution Bars, which also owns Peach Pubs, wants to close about a quarter of its 80 venues.

If the restructuring plan fails to gain sufficient approval from creditors, the only viable alternatives for the company would be a sale that would ascribe little value to its equity, or administration.

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A significant number of jobs will be put at risk by the closures, which are expected to be concentrated on the Revolution-branded chain.

About 2,500 people work for the group, which floated in London for the second time in 2015.

Cavendish, the investment bank, is working on the emergency capital-raising.

Revolution said in January that it would shut eight sites, blaming declining spending among younger consumers.

A Revolution spokesman declined to comment on Monday evening.

Written by: Newsroom

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