The group, which operates bars and gastropubs mainly under the Revolution, Revolución de Cuba and Peach Pubs brands, is currently engaged with key shareholders and other investors, including Luke Johnson, in respect of a fundraising following “a period of external challenges”.
In a statement, Revolution Bars Group added: “The company continues to trade in line with management’s expectations. Further announcements will be made, as appropriate.
“The company is not in talks with, nor in receipt of an approach from, any potential offer or relating to an acquisition of the issued and to be issued share capital of the company.”
‘Secret talks’
The announcement from the business comes after Sky News claimed Revolution was “in secret talks about sale and mass venue closures”.
The new outlet claimed Revolution “is plotting the closure of a quarter of its venues” and was in talks with investors about an “emergency fundraising” while putting “itself up for sale”.
It added plans were being drawn up to shut about 20 of its worst-performing bars and has been looking to raise approximately £10m, which is more than the company’s current market capitalisation.
Sky News said one investor approached about the prospective share sale said it appeared to be dependent upon the successful implementation of a restructuring plan to close sites.
It also claimed if restructuring failed to happen, “the survival of the company would be in doubt with insolvency the only likely alternative”.
Jobs fears
It added jobs would be put at risk by the closures, which would likely be focused on the Revolution brand.
Sky News also claimed prospective buyers could include pubco Stonegate and that although Revolution has a valuation of less than £7m, it remains a “significant player” in the UK night-time economy.
The company said in January that it would shut eight sites, blaming declining spending among younger consumers.
In a trading update later that month, it warned on profits but said it had had its best Christmas trading period for four years.
