Revolution Bars weighs up restructuring options
Revolution Bars Group PLC has issued a market update this morning confirming that a restructuring or partial sale of the business is imminent.
A brief statement 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. 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.”
Entrepreneur and investor Luke Johnson is the former owner of Pizza Express, and currently the owner of Gail’s Bakery. He is also an investor in Kelso, the activist investor in THG.
A former chairman of Channel 4 TV, he has been involved as a director/owner of various quoted companies in retailing, pubs and bars, parcel delivery and maritime commerce, including Whittard of Chelsea, My Kinda Town, Nightfreight, Topps Tiles and American Port Services.
He was chairman/part-owner of Draft House, the craft pub chain from 2011. It was successfully sold to Brewdog in 2018.
He was also chairman and largest shareholder in Patisserie Holdings PLC, which went into administration following a major fraud in 2018.
As well as Revolution Bars, the group also operates Peach Pubs and the Revolucion de Cuba chain.
According to Sky News it has also been sounding out investors about a potential cash call to raise approximately £10m – more than the company’s current market capitalisation.
The company insists it “continues to trade in line with management’s expectations” but as recently as January 2024 the business was warning of tough trading brought upon by the increase in the minimum wage next month (April 2024).
At the start of 2024 the business shut down eight of its “least profitable bars” to reduce future site losses.
However, in the statement, attributed to CEO Rob Pitcher, the company said it is “not in talks with, nor in receipt of an approach from, any potential offeror relating to an acquisition of the issued and to be issued share capital of the Company.”
Shares in Revolution Bars were trading at 2.9p, and have fallen by 57% over the last year.
UPDATE 08:45: Shares dropped to just 1.26p this morning.
