Revolution Bars ends sale process and kickstarts restructuring and fundraising plan

Revolution Bars has announced it has ended its formal sales process and launched a restructuring and fundraising plan in a bid to save the business from administration.

 

The troubled bar group, which is behind the Revolution, Revolución de Cuba and Peach Pubs brands, launched a formal sale process in April alongside a restructuring plan that included raising £12.5m.

 

In May, Revolution Bars Group said it was in talks with Nightcap over a possible deal, before claiming it was in talks with 32 potential buyers.

 

But the Nightcap deal was abandoned this week when Revolution rejected its proposal, concluding it was “incapable of being delivered”.

 

As it did not receive any more bids, Revolution Bars has now taken the company off the market.

 

The group will now look to restructure the business by exiting the leases of some loss-making sites and proposing rent reduction on others to enable them to return to profitability.

 

In a statement released this morning, Revolution Bars Group said it expects the restructuring plan to return the business to profitability, citing a forecasted £3.8m improvement in group EBITDA in full year 2025.

 

The board said it “unanimously believes” the restructuring plan is in “the best interests of all stakeholders”.

 

If the restructuring plan and associated fundraising were not to go ahead, the group warned it would need immediate funding of £700,000 in the week ending 24 August 2024 and £8.1m in the week ending 7 September 2024 to prevent the business from entering administration.