Revolution Bars to close venues as restructuring plan approved
Revolution Bars is set to close a number of its venues after its restructuring plan was sanctioned by the Court.
The proposals, which were announced earlier this year, see the bar operator close 18 sites, reduce rents at a further 14, and extend its secured lending facilities.
Following completion of the restructuring plan, Revolution said it will operate 27 Revolution Bars, 15 Revolución de Cuba Bars, 22 Peach Pubs and one Founders & Co. site.
The group said it expects the plan to deliver an improvement in annualised earnings (EBITDA) of around £3.8m.
Revolution said the objective of the plan is to restore it to financial stability, providing a platform for recovery from the trading challenges caused in recent years by the structural changes to the late night Bars market following the Covid pandemic. The group said the restructuring secures Revolution’s long-term future and delivers the best outcome for all its stakeholders.
The plan is also facilitated by a £12.5m fundraising which includes cornerstone investments of £9.5m, with £3m coming from leisure entrepreneur Luke Johnson, who, under the restructuring plan, is set to become chair of the business.
Rob Pitcher, CEO of Revolution Bars Group said: “We are very pleased that the Court has sanctioned the restructuring plan for Revolution Bars Limited. The group is now well diversified across the key brands, providing a more secure financial base and we look forward to the future with improved optimism.
“We know this has been a very difficult period for all of our teams both in our sites and in our support office and I’d like to thank them for their support and resilience.
“I would also like to thank the group’s wider stakeholders for their support, including our secured lender, current shareholders, our new and existing shareholders who have participated in the fundraising and all our advisors who have assisted us in the development of the plan.”