Revolution Bars confirms it’s looking at ‘strategic options’ as it fights to survive
Revolution Bars has confirmed this morning that it’s “actively exploring all the strategic options available” after reports emerged last night the group was looking to sell part of its portfolio.
Sky News’ Mark Kleinman revealed last night the London-listed hospitality group, which employs 2,500 people across the UK, was drawing up plans to axe roughly 20 of its underperforming bars,
The group also reportedly approached investors in a cash call to raise £10m, more than its market capitalisation of less than £7m.
In a statement issued to the market this morning the company said: “Following a period of external challenges which have impacted the company’s business and trading performance, the board is actively exploring all the strategic options available to it to improve the future prospects of the group.”
It added: “These include a restructuring plan for certain parts of the group, a sale of all or part of the group and any other avenue to maximise returns for stakeholders. The company also confirms it is currently engaged with key shareholders and other investors including Luke Johnson in respect of a fundraising.”
Revolution Bars added that trading has been inline with expectations so far this year.
Revolution said it would close eight bars in January as young people scaled back on nights out amid cost pressures.
Investors close to the matter have said that the group would face insolvency as the only alternative without selling off more bars.
Shares in Revolution Bars have cratered 57 per cent over the last year.
The news comes as yet another blow for the struggling hospitality industry. At the start of the year Rekom UK, the country’s biggest nightclub owner, called in the administrators.
Just last weekend, it was rumoured Whitbread was mulling a sale of about a third of its underperforming restaurants and pubs.
Apparently, was close to offloading the business to Beverly Hills-based Platinum Equity, but the deal collapsed after the two parties failed to agree on a price.
Now, bosses at the hospitality giant are said to have drafted in Christie & Co to sell between 30 and 50 of its worst-performing sites, City sources have said.
A Revolution spokesman declined to comment to City PM.