Wed. Oct 21st, 2020

Revolution may close some bars for good after new 10pm curfew

Revolution Bars has announced it will shut down locations as part of a radical restructuring to prevent the collapse amid fears that new coronavirus restrictions could take a heavy blow.

The company told shareholders on Friday that it was considering restructuring options after recent government measures to combat the pandemic “aggravated” difficult conditions.

Bar operators are expected to be particularly hard hit by the 10 p.m. curfew announced by the Prime Minister on Monday.

Revolution, which also operates the Revolucion de Cuba brand, is currently assessing the potential impact of the restrictions “before deciding what the next steps should be”.

The chain, which operates 74 bars, said one option it is considering is a bankruptcy tool called a voluntary corporate agreement (CVA) to reduce debt.

High street chains like Pizza Express used CVAs during the pandemic to secure restructuring deals with major store closures.

The revolution worried 2,775 people at the height of the lockdown after forcing all of their bars to close.

The company has reopened 62 of its bar locations across the UK.

In a statement to the London Stock Exchange, the company said: “Given the continued challenging trading environment and the aggravation of further restrictions related to Covid-19 announced by the government earlier this week, the Board of Revolution confirms that it has worked with an advisor to evaluate different strategic options for the group.

“Revolution has a strong balance sheet following its £ 15 million capital raise announced in June and the expansion of its banking facilities. However, the Board of Directors believes that due to the long-term nature and the potential impact of recent operating restrictions, all options must be considered to ensure that its business remains profitable. “

It goes without saying that the company is working on the process with bankruptcy specialists at AlixPartners.

Revolution’s shares were trading at 18.2% to 9 pence in early trading.


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By ashish

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