Revolution Bars has raised £21m through an open offer as it seeks to reduce its debts and raise money to accelerate the refurbishment of its existing estate.
The group, which operates 66 bars trading under the Revolution and Revolución de Cuba brands, has some £28.5m of debt, a level it said would limit its ability to invest in the refurbishment and expansion of its estate.
Some £11m of the proceeds raised will be used to strengthen the group’s balance sheet, with £2.5m being used to refurbish an additional 15 bares over the next 18 months. The remaining £7.5m will be used to take advantage of favourable market conditions to expand its estate. The firm hopes to open around eight new bars.
Last October the firm used a CVA to reduce the size of its estate from 73 bars.
This latest fund raising is the second open offer the firm has completed since the onset of the Covid pandemic in early 2020. In June last year it raised £15m to help it achieve “an appropriate level of indebtedness and emerge from the Covid-19 pandemic in a position of strength”.
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