Revolution Bars eyes potential CVA that could see some sites close
Revolution Bars is considering a restructure that could see parts of its estate close, the chain said on Friday.
The company 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.”
It added that one of the potential options being looked at is a reduction in the size of the group’s estate by the implementation of a company voluntary arrangement (CVA).
The group has 73 bars.
Like rivals, Revolution Bars had to shut venues in March for the lockdown. Hospitality businesses could only reopen sites from July, with social distancing measures in place.
The sector came under further pressure this week when the government announced pubs and restaurants in England will have to start closing at 10pm, and firms will be restricted to offering table service only, as part of efforts to tackle a rise in coronavirus cases.
In a further blow, people have been told to work from home if they can. Bars in the West End and City are already struggling since reopening from lockdown, with few tourists and office workers in town.
Revolution Bars said no decisions have yet been made regarding any restructure, “and there is much further work to complete before the board decides on any appropriate course of action”.
The firm said it has a strong balance sheet, 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”.