Eclectic Bar Group, which operates 19 bars under a variety of brands, has reported a pre-tax loss of £511,000 for the year ended 28 June 2015.
Executive chairman Luke Johnson (pictured), who was appointed in June, described the financial year as a "challenging period" for the company.
He cited the main issues as the change in behaviour of students, intense competition in key trading areas, and the disappointing performance of its two most recent openings: Lola Lo Derby and Dirty Blonde Brighton
Year-on year revenue decreased by 1.76% to £22.3m (2014: £22.7m) and group EBITDA fell to £1.8m from £2.6m.
Eclectic said that it had responded to the issues affecting its trade by reducing costs at head office level, closing non-profitable nights, developing its food offer and rationalising its estate.
The company also revealed that it would not refurbish recently acquired sites in Sheffield and Liverpool and is looking to dispose of them both in the next 12 to 24 months.
"Much progress has been made in realigning the group for today's marketplace. The management team are taking the requisite steps to create a firm foundation for the future. Fundamentally Eclectic is a good company with a robust business model and an attractive portfolio of sites," commented Johnson.
"I was delighted to be appointed as executive chairman in June and to invest in the business with my fellow directors. This has raised £1,650,000 of cash for the company and will provide useful additional funding for the group going forward."