Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Revolution Bars launches CVA with six sites expected to close

27 October 2020 by
Revolution Bars launches CVA with six sites expected to close

Revolution Bars has launched a Company Voluntary Arrangement (CVA) to shed sites, reduce rents, "and improve the profitability and return on capital of the group over the long-term".

The subsidiary of Revolution Bars Group, which operates 50 Revolution-branded bars of the wider group's 73 sites across the UK, proposes to exit six underperforming, over-rented or unprofitable sites, and "obtain materially improved rental terms" on seven others.

The group has reported previously that comparable venue sales in the eight weeks from reopening in July through to August were 72.5% of last year, however in the last five weeks to 24 October have reduced to 49.4% due to the 10pm curfew and local lockdowns, with more severe operating restrictions now affecting many of the group's reopened bars.

Given the latest government restrictions, the group said its trading outlook is uncertain and it anticipates that the important Christmas trading period will be "severely compromised". It said any return to near normal levels will not be possible before next spring at the very earliest, and has therefore proposed the restructure.

The remaining 37 bars in the portfolio will not be materially affected, neither will Revolution Bars Group's Revolución de Cuba-branded bars or four Revolution-branded bars operated by other entities in the group, and there is no impact on the group's AIM-listed status.

If the CVA proposals are accepted on 13 November, the group estimates that its cash flow will be £2m better off each year over the next two years.

Chief executive Rob Pitcher said: "Throughout this extended period of distress caused by Covid-19, the group has sought to prioritise the health and wellbeing 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. 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."

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking