Shares in Revolution Bars suspended after failure to post results as future in balance
Shares in Revolution Bars have been temporarily suspended after it failed to publish its interim results last week.
The troubled business, which owns Revolution, Revolución de Cuba and Peach Pubs, told investors last week it is “actively exploring” all options to keep the business afloat.
It said this could include a “restructuring plan” for certain parts of the group or a sale of “all or part” of the company.
Revolution also confirmed it was in talks with bakery Gail’s chairman Luke Johnson regarding fundraising.
The company said suspension from trading will be lifted with the publication of its interim results in “due course”.
Today’s development delivers another blow to the hospitality chain, which owns 58 premium bars and 22 gastro pubs.
The firm lowered its profit expectations back in January after warning cash strapped youngsters ditching night outs was continuing to chip away at its earnings.
In a trading update, the nightlife operator said it expected EBITDA to be £3-3.5m, down from a range above £5m.
Chief executive, Rob Pitcher already closed eight underperforming sites because of youngsters scaling back this year.
Bars across Southampton, Reading and Liverpool were impacted, but no sites in London closed.
Speaking at the time, he said: “Looking forward, both business rates and national living wage will increase materially in April 2024 and therefore we have had to take the view that, with inflation remaining high, the recovery for the Revolution business, our largest brand will take longer than we had previously forecast.”
The public struggle of Revolution is reflective of the tough market conditions Britain’s hospitality sector is currently facing.
Inflation and supply issues have led to higher costs for owners, while the cost of living squeeze has meant customers have less disposable income.
Nightclub operator Rekom collapsed earlier this year, closing 19 sites and over 400 jobs at loss. Just five sites remain open following its pre-pack administration sale.