Revolution Bars Group considers CVA
According to an update published on 25 September, Revolution Bars Group is currently assessing the potential impact of the Government’s latest restrictions and exploring options such as the downsizing of its estate through a company voluntary arrangement (CVA).
While no decisions have yet been made, the board is said to be weighing up all necessary options to ensure its survival in light of the Government’s latest measures.
As reported by The Morning Advertiser (The MA), Prime Minister Boris Johnson announced on 22 September that the UK’s pubs and bars would be subject to a 10pm curfew, compulsory table-service only policies and new face mask requirements in response to a spike in the number of new Covid-19 cases.
The update from Revolution comes after the group revealed on 5 June that it intended to raise up to £15m through share placings in a bid to weather the ongoing crisis and prepare for life after lockdown.
What’s more, the operator secured a £16.5m loan under the Government’s Coronavirus Large Business Interruption Loan Scheme (CLBILS) in May.
Strong EOTHO trading
According to an update published on 3 September, the Government’s Eat Out to Help Out (EOTHO) scheme drove Monday to Wednesday sales across Revolution’s estate to 188.4% of last year’s takings throughout August.
While Revolution’s trading in the four weeks to 1 August yielded 60% of 2019’s figures, the four weeks to 29 August – in which the operator offered customers 50% Government funded discounts under EOTHO – saw comparable sales rise to 77.5% of 2019’s takings.
Overall, comparable sales during the eight weeks to 29 August were 72.5% of last year’s figures.
However, in the same update the group explained while it had been granted rent waivers at 23 of its venues, discussions remained ongoing with landlords at 16 further sites.
Revolution’s board expressed disappointment that almost half of its landlords had refused to enter meaningful discussions on rent relief.
