Revolution ends sale process and launches restructure

Revolution Bars Group plc has ended the formal sale process of the business, paving the way for the launch of its restructuring plan. 

The news follows the announcement by Nightcap plc that it will not be making further offers for the purchase of Revolution Bars, after Nightcap's proposal was rejected at the end of May.

Revolution has confirmed that no other approaches have been made for the company, so it is now pressing on with its restructuring plan, which includes the fundraising of £12.5m.

As previously stated by the bar and pub operator, the plan includes amending and extending the group's secured lending facilities, exiting the leases of certain loss-making sites, and proposing a rent reduction on certain other sites to enable the company to return to profitability at a sustainable level.

Could a merger or acquisition still happen?

The group's M&A Process, which resulted in several proposals being received, will progress if the fundraising is unsuccessful and the restructuring plan is no longer capable of being progressed. However, Revolution has said that none of the proposals presented would result in a financial return to shareholders.

Revolution's board expects the restructuring plan to return the company to profitability (leading to a £3.8m improvement in group adjusted EBITDA in FY25).

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