The CVA, designed to reduce the size of the Revolution Bars estate as well as its rental costs, will also seek improved rental agreements on the seven other of the group’s venues.
Where rental terms are being sought, landlords will have the option to terminate the lease at various points over the next two years.
If the CVA proposals are accepted, the group estimates that its annual cash flows (before one-off costs of implementing the CVA) will improve over the next two years by approximately £2m per year.
“Throughout this extended period of distress caused by COVID-19, the group has sought to prioritise the health and well-being of its staff and customers, minimise its cash consumption, maintain good levels of liquidity to ensure its ongoing viability and to be in a position to take advantage of opportunities that may arise once restrictions are lifted,” says CEO Rob Pitcher.
“The CVA proposed by the group’s Revolution Bars Limited subsidiary entity, if agreed by landlords, is another proactive step to lower outgoings to help safeguard the future of the Group and improve long-term performance.”
In May the group said it was "well-placed" to return to a good trading level following the Coronavirus crisis.