Revolution Bars ‘actively exploring' options to improve its future prospects
In a statement the group, which operates 58 bars and 22 pubs under the Revolution, Revolución de Cuba, and Peach Pubs brands, said options included a sale of all or part of the group and any other avenue to maximise returns for stakeholders and improve its future prospects.
It also said it was engaging with key shareholders and other investors, including Luke Johnson, in respect of a fundraising.
The statement follows a Sky News story published yesterday (25 March) that claimed the group is planning to close a quarter of its worst performing venues and put itself up for sale.
Sky News has also claimed that Revolution is holding emergency fundraising talks with investors to raise around £10m, which it says is more than the company’s current market capitalisation.
In January this year Revolution announced the closure of eight of its ‘least profitable bars’ in order to reduce future losses. In a trading update, the group cited the challenging macroeconomic trading environment impacting the sector, compounded by the planned increase in the national living wage in April, as being behind the closures
In the statement issued today (26 March) by Revolution the company described “a period of external challenges which have impacted the company’s business and trading performance” but said that it continued to trade in line with management’s expectations.
It added: “The Company 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.”
