Revolution Bars exploring CVA
Revolution Bars Group has confirmed it has been working with advisers to assess its options and explore a reduction in the size of its estate through a Company Voluntary Arrangement (CVA), in light of the latest operating restrictions.
In a statement the group said: "Further to the continuing challenging trading environment and exacerbated by the further Covid-19 related restrictions announced by the government earlier this week, the board of Revolution confirms that it has been working with advisers to assess various strategic options for the group.
"The board is currently evaluating the potential impact of the latest developments on the group's business before deciding what the next steps should be. One of the potential options being explored is a reduction in the size of the group's estate by the implementation of a company voluntary arrangement (CVA).
"No decisions have yet been made and there is much further work to complete before the board decides on any appropriate course of action. Revolution has a strong balance sheet following the £15m equity fundraising and the extension of its banking facilities announced in June but the board believes that the long term nature and potential impact of the latest operating restrictions means that it must consider all necessary options to ensure that its business remains viable."
The group announced it was closing its Liverpool site earlier this month in a trading update. It reported comparable venue sales in the eight weeks to 29 August at 72.5% of last year following the Eat Out to Help Out scheme, which it has continued to run through September at its own cost.
However, at the time chief executive Rob Pitcher said almost half of the group's landlords had "refused to enter into meaningful discussions".
New restrictions this week announcing a 10pm curfew on hospitality businesses are likely to hit the business hard, and leaders from the night time economy sector have said they are "an industry in exile", having been excluded from the latest raft of government support.
Revolution is one of many hospitality firms exploring or entering into CVAs following the impact of Covid-19 on the industry, joining brands including Gusto, Pizza Hut, Wahaca, PizzaExpress and Yo!
