Revolution Bars Group predicts boom in trade after reopening

Revolution Bars Group has announced it expects to see a ‘rapid rebound' in trading upon reopening following a difficult year for the company.

The bar chain plans to reopen 20 sites if outdoor dining is allowed on 12 April and all 66 of its locations if indoor hospitality is given the green light to trade on 17 May.

It said the roadmap out of lockdown and support measures set out in yesterday's Budget would allow the company to regain a more solid financial position.

Revolution chief executive Rob Pitcher added: "The light at the end of the tunnel is getting brighter".

Last year a subsidiary of the group underwent a company voluntary arrangement (CVA) that saw the closure of six bars and seven others move to turnover-based rents.

In December Revolution estimated that enforced closures due to lockdown cost the company approximately £400,000-£450,000 a week.

At the time the company had £17.6m of liquidity headroom, and as of 3 March this has decreased to £9.8m with net debt of £27.1m.

But Revolution said it has ‘more than sufficient' resources to enable it to survive until reopening in May, assuming restrictions reman as planned.

Pitcher warned the wider late-night sector still needed ongoing government support to recover.

He said: "Notwithstanding that good news, our industry remains on the critical list and the continued support announced by the government is required to ensure that we can be in a position to return to growth and be a driver of national job creation once again, particularly for young people who are the lifeblood of our industry and who have been severely impacted over the last year."

Revolution Bars Group runs both the Revolution and Revolución de Cuba brands.