Revolution’s restructuring plan approved by the High Court

Revolution Bars Group is set to close sites across its estate after its restructuring plan was approved by the High Court.

 

The move is designed to save the business from collapse following a drop in late-night trade after the pandemic.

 

Around 15 bars will close, while Revolution will restructure its debt and see a rent reduction across some of its other locations.

 

It will be left with a slimmed-down business of 65 sites, including 27 Revolution bars, 15 Revolución de Cuba bars, 22 Peach Pubs and one Founders & Co site.

 

Revolution put itself on the market earlier this year but ultimately turned down an offer from rival bar operator Nightcap.

 

It instead chose to pursue the restructuring plan, which has been supported by £12.5m in emergency funding.

 

Revolution’s board expects the plan to deliver an improvement on significant annualised earnings before interest, taxes, depreciation and amortisation of around £3.8m.

 

Rob Pitcher, chief executive of Revolution, said: “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.”