Revolution Bars has said it is exploring all options as it seeks to secure the future prospects of the group.
The operator of around 100 bars around the UK is said to be exploring the potential closure of as many as one quarter of its properties.
This morning the firm said: “Following a period of external challenges which have impacted the company’s business and trading performance, the board is actively exploring all the strategic options available to it to improve the future prospects of the group.”
It added: “These include a restructuring plan for certain parts of the group, a sale of all or part of the group and any other avenue to maximise returns for stakeholders. The company also confirms it is currently engaged with key shareholders and other investors, including Luke Johnson, in respect of a fundraising.”
The group is understood to be seeking to raise around £10m of fresh capital.
In January, Revolution, which has market cap of just £6.7m, had to readjust its like-for-like growth expectations.
While festive trading had been strong, the group said 2024 had started softly and that its younger clientele was struggling with the rising cost of living.
It said: “While the business continues to manage costs tightly, the significantly above inflation increases in both business rates and payroll costs set by the government are a significant additional burden and barrier to growth.”
Revolution is expected to release its interim results before the end of the month.
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