The national bar and nightclub chain Revolution could soon disappear from some high streets and city centres after it emerged that the group would sell off some of its assets in an attempt to save the floundering business.
Earlier today (March 26), Revolution Bars confirmed that it was "actively exploring all the strategic options available" to shore up the company's finances after it emerged that they were looking to close 20 of its worst-performing bars. The bar chain employs more than 2,500 people across roughly 90 locations, including four in Greater Manchester, though the company is yet to confirm which of its branches it is looking to axe.
The proposed sell-off follows a gloomy start to the year for the business, when it announced the closure of eight other locations amid the difficult trading conditions that many hospitality businesses found themselves in post-pandemic. The company has lost 99 per cent of its share value since its launch on the London Stock Exchange in 2015, falling by 57 per cent in the last year alone.
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Now, the value of the overall company has fallen as low as £7m, despite its number of assets across the UK. According to CityAM, investors have said that the business faces insolvency if it is unable to sell off more of its bars.
In a statement to the market this morning, the company 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.”
Revolution Bars also own the brands Revolución de Cuba, Founders & Co, Playhouse, and Peach Pubs. It is not yet clear if there are any plans to close pubs and bars across these other brands.
