Revs restructuring plan approved
The move will allow the group, which trades mainly under the Revolution, Revolucion de Cuba and Peach Pub brands, will enable the business to restructure certain of its liabilities.
This includes amending and extending the group’s secured lending facilities, exiting the leases of certain loss-making sites, and implementing necessary rent reductions on certain other sites to enable them to return to profitability at a sustainable level.
The board expects the plan to deliver a significant annualised EBITDA (earnings before interest, taxation, depreciation and amortisation) improvement of c£3.8m.
The objective of the restructure is to provide financial stability to recover from the trading challenges to the late-night bars market following Covid and will “secure the long-term future of the group and delivers the best outcome for all stakeholders”.
Shares offer
Following completion of the plan, the business will operate 27 Revolution Bars, 15 Revolución de Cuba Bars, 22 Peach Pubs and one Founders & Co site.
The restructure is supported by the group’s secured lender, delivered through the refinancing of the group’s banking facilities.
As announced on 10 April 2024, the plan is also facilitated by a £12.5m fundraising via a shares offer.
On its current trade, Revolution explained during the latter part of the year ending June 2024, there was uncertainty and distraction due to the restructuring process. However, it has confirmed EBITDA at the 2024 financial year end is c£3.0m and net bank debt as of 8 August is £23.8m.
Well diversified
The group expects to publish its results for the 52 weeks ending 24 June in October 2024.
Revolution Bars Group CEO Rob Pitcher said: “We are very pleased the court has sanctioned the restructuring plan.
“The group is now well diversified across the key brands, providing a more secure financial base and we look forward to the future with improved optimism.
“We know this has been a very difficult period for all of our teams both in our sites and in our support office and I’d like to thank them for their support and resilience.
“I would also like to thank the group’s wider stakeholders for their support, including our secured lender, current shareholders, our new and existing shareholders who have participated in the fundraising and all our advisers who have assisted us in the development of the plan.”
