Revolution Bars could close 18 sites under restructuring plans
Revolution Bars Group could close 18 sites and reduce rents at a further 14 under proposed restructuring plans.
The group – which which owns the Revolution, Peach Pubs, and Revolucion de Cuba chains – is also looking to raise up to £12.5m from new and existing investors to support the restructure.
In March, the group confirmed that it was “exploring all the strategic options available to it”, including restructuring plans for part of the group or a potential sale.
If the restructuring plan is implemented, Revolution will look to exit the leases of 18 loss making sites, including six which are already closed, and impose a rent reduction on 14 bars which Revolution said will enable a sustainable return to profitability.
The £12.5m fundraising would include cornerstone investments of £9.5m, including £3m from leisure entrepreneur Luke Johnson, who, under the restructuring plan, would become chair of the business.
The capital is expected to allow Revolution to undertake a store refurbishment programme from the 2026 financial year, whilst also exploring site acquisition opportunities for its Peach and Revolucion de Cuba brands.
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.”
As an alternative to the potential restructuring plan, Revolution has also launched a formal sale process, to explore whether a sale of the entire company or one or more of its subsidiaries will provide a more beneficial outcome.