Nightcap weighs up options for possible Revolution Bars deal

Revolution Bars Group has confirmed speculation that it has met with rival bar chain Nightcap about a possible deal for the business.

Revolution, which is proposing to close almost a quarter of its 80 sites through restructuring, said it had held an “exploratory meeting” which considered “a range of possible transactions”.

Nightcap is led by Sarah Willingham, a former investor on BBC’s Dragon’s Den, and operates the Dirty Martini, Cocktail Club and Piano Works brands.

“There can be no certainty that any firm offer will be made for Revolution Bars Group, nor as to the terms on which any firm offer might be made,” Revolution said in an announcement this morning.

Nightcap said in an update it was assessing “a number of possible options”, including taking on certain Revolution sites, assets, or brands.

It said its evaluation was at an early stage and should not be taken as a “firm intention” to make an offer for the business.

“The board believes that assessing the options is in line with the company’s ambition to create the UK’s leading bar group by consolidating the drinks-led premium bar segment of the UK hospitality sector through strategic acquisitions,” Nightcap said in a statement.

“The board considers that certain brands of Revolution Bars could be an excellent addition to the company’s existing portfolio of brands.”

Both companies were responding to a Sky News article, which said both Nightcap and nightclub giant Rekom had expressed interest in buying all or part of Revolution Bars.

A number of private equity firms are also said to have been planning to submit offers ahead of a deadline set by Revolution’s advisers on Wednesday.

Nightcap is not participating in the formal sales process for Revolution, which was announced on 10 April 2024.

Revolution said this week it had postponed its annual general meeting “to provide additional time to fully explore all its strategic options”.

The company, which is behind the Revolution de Cuba and Peach Pubs brands, has received commitments from investors to raise £12.5m funding as it prepares to launch a restructuring plan.

It has struggled with a rise in costs and downturn in spending from its typically younger customers.

About 2,500 people work for Revolution, which has seen its stock value slump by nearly 75% over the last year.