Written by: Keith Tully
The business behind Revolution Bars is planning closures of some of its outlets after its revenues were hit by the Covid-19 curfew introduced in England in recent weeks.
Hospitality operations nationwide have been struggling to cope with the impact of coronavirus throughout much of 2020, with the imposition of 10pm closing times the latest public health policy to have curtailed sales opportunities within the sector.
For Revolution Bars, the curfew policy has reportedly taken sales down from around 78 per cent of where they were before Covid-19 down to just 48 per cent of those figures.
Now with local lockdowns in place and the 10pm curfew apparently here to stay, the Revolution Bars Group is planning to close some of its units and enter one of its businesses, Revolution Bars Limited, into a Company Voluntary Arrangement (CVA) in an effort to reduce costs.
A CVA deal in the making could soon see six Revolution-branded bars closed and rents reduced at seven others, with proposals to that effect set to be put to creditors in November.
There are 73 Revolution branded bars in the UK, of which 50 are operated by Revolution Bars Limited, which is owned by the Revolution Bars Group.
It is not currently clear precisely which Revolution bars face having to close their doors but it’s understood that around 130 jobs will be lost in the process.
Covid restrictions have contributed notably to what the Revolution Bars Group has described as an uncertain trading outlook for its business, with the Christmas trading period expected to be “severely compromised” and normal levels of operation expected not to return until “next spring at the very earliest”.
Rob Pitcher, Revolution Bars’ chief executive, has described recent pandemic-hit months as being an “extended period of distress” for his business and explained why the CVA is being proposed as an insolvency option.
“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,” he said.
13th October 2021
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