Jobs and sites at risk as bars group considers CVA
Jobs and sites are at risk at leisure group Revolution Bars, which is considering a company voluntary arrangement (CVA) to reduce the number of venues it has as it looks “to ensure that its business remains viable”.
The hospitality industry has been hit badly by lockdown and the introduction of localised measures which are limiting opening hours and capacities.
In a statement, the company said it “believes that the long term nature and potential impact of the latest operating restrictions means that it must consider all necessary options”.
The Manchester-based group operates 74 premium bars under the Revolution and Revolución de Cuba brands.
It raised £15m in June, weeks after it had achieved an extension to its debt facilities with its bank, NatWest. It also decided to step down from the main market and switched to an AIM listing in the summer.
The company said these measures meant it has a “strong balance sheet” but it is responding “to the continuing challenging trading environment”.
On Friday, it said: “The board is currently evaluating the potential impact of the latest developments on the group’s business before deciding what the next steps should be.
“One of the potential options being explored is a reduction in the size of the group’s estate by the implementation of a company voluntary arrangement.”
Revolution Bars share price dropped 15% within minutes of the announcement and continued a three-year decline in its value. Its share price has fallen from 186p in September 2017 to close at 9.5p on Friday.