Revolution urges shareholders to back £12.5m restructuring plan

Revolution Bars Group has urged shareholders to vote in favour of a £12.5m fundraising and restructuring plan to avoid losing their investment in the company.

 

The troubled bar chain has rescheduled its general meeting for 14 June, when the plans will be voted on.

 

Revolution, which is also behind the Revolucion de Cuba and Peach Pubs brands, launched a formal sale process in April alongside a restructuring plan that included closing 18 of its 80 bars.

 

In early May, the company claimed it was in talks with 32 potential buyers for the business.

 

But yesterday Revolution said it had rejected a takeover bid from Dirty Martini and Cocktail Club operator Nightcap as it was “incapable of being delivered”.

 

In an update sent to investors this morning, Revolution said: “The board strongly recommends that shareholders read this announcement in full and vote in favour of the resolutions required to approve the fundraising.

 

“If the fundraising is not approved, the board believes that shareholders are highly likely to lose all of their investment in the company.”

 

Earlier this year, Revolution’s chief executive Rob Pitcher told The Caterer the group had suffered from a drop in spending by young people amid the cost of living crisis.

 

He said the "Tuesday, Wednesday, Thursday night out has disappeared” and customers were increasingly visiting only on special occasions.