Restructure plan proceeding at Revolution Bars as no buyers step forward
No buyer has emerged as willing to take on the whole of troubled hospitality group Revolution Bars, meaning the planned restructure will now be the most likely next step.
Last week (7 May 2024), Revolution said it had received approaches from 42 parties who were then invited to take part in a full sale process (FSP), of which 32 agreed to sign non-disclosure agreements.
Revolution’s board is conducting a twin-track process; putting the whole or part of the business on the block, while also embarking on detailed plans to issue new shares as part of a restructuring package to relaunch the business, and demonstrate beyond all doubt that it is the best option for shareholders.
In a statement to the stock market this morning (14 May 2024) Revolution’s board said: “As at the date of this announcement phase 1 of the FSP and M&A process has not resulted in any proposals relating to the acquisition of the entire issued share capital of the Company, or the acquisition of the Company’s assets as a whole via a single transaction.”
Rival operator Nightcap has also indicated it is interested in acquiring Revolution assets. Nightcap operates cocktail bars mainly in London, but owns Dirty Martini in Manchester and Tonight Josephine in Liverpool.
Revolution also confirmed that offers have been made for individual subsidiaries and assets, but said none of the proposals would result in a financial return to shareholders.
In April Revolution said it was pursuing a twin track rescue and restructuring deal with £3m of backing from entrepreneur Luke Johnson, £3m from the Robus Recovery Fund II and £3.5 million from three key existing shareholders.
The company has delayed its special annual general meeting to decide on the best course of action, including “any proposal made by Nightcap Plc” that “may deliver a superior outcome to the Restructuring Plan.”
