The boss of struggling Revolution Bars has said he is “very pleased” to have secured High Court approval for its restructuring plan, which could stave off potential insolvency but result in the closure of around 25 bars. The hospitality business needed the court to sanction its overhaul which it hopes will restore its finances after a difficult few years following the pandemic.
The restructuring plan will involve ending the leases of several loss-making venues, leaving the group with fewer bars across the UK. After the overhaul is completed, the company said it will operate 27 Revolution Bars, 15 Revolucion de Cuba bars, 22 Peach Pubs and one Founders & Co site – leaving it with 65 venues in total. At the end of the 2023 financial year, it had 89 sites including 46 Revolution Bars.
Chief executive Rob Pitcher said: “The group is now well diversified across the key brands, providing a more secure financial base and we look forward to the future with improved optimism. We know this has been a very difficult period for all of our teams both in our sites and in our support office and I’d like to thank them for their support and resilience.”
Revolution said its trading in bars in recent months was “undoubtedly impacted by the uncertainty and distraction of the restructuring process”, which had been the main focus of its board of directors. But it said it had met its target of achieving about £3 million in earnings, before measures like tax and interest, by the end of June.
The group is hoping its restructuring plan will put it back onto stronger financial footing, having been affected by the post-pandemic hit to the nightlife sector. It has also said its bars were hit by the cost-of-living crisis squeezing consumer finances and regular train strikes affecting its younger customers.