Revolution Bars warns of going bust

Revolution Bars has announced the company may go bust following the Government's new Covid-19 restrictions hitting the sector and is assessing options for a rescue plan.

Revolution in Stafford
Revolution in Stafford

The chain, which has bars in Stafford and Birmingham, said no decision has been made but one option being considered is an insolvency tool called a company voluntary arrangement (CVA) to reduce debts.

The business, which has reopened 39 of its 74 bars, furloughed 2,775 during lockdown.

In a statement to the London Stock Exchange, Revolution Bars said it raised cash from investors and extended loans with its banks in June, but warned: "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.

"Revolution has a strong balance sheet following the £15 million 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."

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