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Revolution Bars CVA wins backing of creditors and landlords

13 November 2020

Could it be a CVA for Revolution Bars?

13 November 2020

Reports say that Revolution Bars has been saved by its creditors and landlords of whom backed its CVA restructuring plan.

Under the CVA, six sites will close (America Square, Clapham High Street, Sunderland, Bath, Birmingham and Solihull) and around 130 jobs will be lost. Turnover-based rents will be applied for two years at seven of the chain's bars (Stafford, Bristol, Reading, Putney, Richmond, Cheltenham and Clapham Junction). All remaining sites will continue to trade, of course, subject to lockdown restrictions.

27 October 2020

Revolution Bars announce plans to close some of its sites following a fall in revenue by a third, due to the Governments 10pm curfew.

Proposals for a Company Voluntary Arrangement will be put to creditors on 13 November. It will include, one of the groups subsidiaries, Revolution Bars Limited, closing six of its branded bars and cutting rents at a further seven.

The CVA is not likely to affect the ordinary operations of the rest of the group, but just the 50 Revolution Bars which its subsdiary owns - locations not yet revealed.

Of the total 2,500 employees, around 130 jobs are thought to be at risk.

Rob Pitcher, CEO of Revolution Bars said: ''Throughout this extended period of distress caused by COVID-19, the group has sought to prioritise the health and well-being of its staff and customers, minimise its cash consumption, maintain good levels of liquidity to ensure its ongoing viability and to be in a position to take advantage of opportunities that may arise once restrictions are lifted. The CVA proposed by the group's Revolution Bars Limited subsidiary entity, if agreed by landlords, is another proactive step to lower outgoings to help safeguard the future of the group and improve long-term performance."

26 September 2020

Revolution Bars shares how challenges to its recovery since the national lockdown had been ‘’exacerbated’’ from the tighter restrictions imposed this week which include a 10pm curfew for those among the hospitality sector.

Revolution Bars currently runs 74 UK outlets but amid this situation, there are plans to reduce this amount. Only 39 of the 74 bars have reopened since lockdown and 2,775 staff were furloughed.

A number of options for its survival and to avoid going bust, have been explored by its board, including restructuring through a company voluntary arrangement (CVA).

‘’No decisions have yet been made and there is much further work to complete before the board decides on any appropriate course of action’’.

Categories: Hospitality, CVA

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