The trading of shares in one of Britain’s largest bar operators was suspended Tuesday, as the company sought to raise emergency funds backed by serial investor Luke Johnson.
Revolution Bars Group said that it was unable to comply with the requirements of Aim junior stock exchange to publish interim results before the deadline on Saturday.
It refused to explain why it couldn’t provide interim figures but stated that “the suspension from trading will be lifted when the interim results are published in due time”. The fundraising prevented it from publishing a future forecast.
The shares of Revolution, that have suffered from a series profit warnings were floated in 2015 at 200p, but they were only worth 1.15p at the time when they were suspended. This valued the business at just £2.76million.
Analysts say the bar operator is attempting to raise £10 million in order to strengthen its finances. The fundraising also includes a revamp of operations, which could include the sale or closing of up to 20 marginal venues. The eight bars that it closed in January were mostly Revolution vodka bars, which are aimed at younger drinkers.
Revolution reiterated, in addition to the announcement made last week, that it “continues evaluating all options available, including engaging key stakeholders and possible investors with regard to a fundraiser”.
The company announced last week that it was considering “a restructuring plan to restructure certain parts of the Group, a possible sale of all or a part of the Group, and any other option for maximising returns for shareholders”. It made it clear, however, that it “was not in discussions with any potential offeror, nor had it received an approach relating to the acquisition of the issued or to be issued share-capital of the company”.
Johnson, 62 years old, former PizzaExpress chairman and Channel 4 Chairman, is said to be among potential investors who are looking at this fundraising. Participants will likely include both internal and external investors.
Rob Pitcher, 49 and the chief executive of Revolution, warned in January that , the future of night-time economies was at risk due to the impact of cost of living crises on young people’s incomes. He claimed that the rise of the national living wages and the doubling in business rates created an economy which was “really under stress”.
He said it was possible the 9.8% increase in the minimum wage for younger workers could be used to pay for nights out. However, if that money is “taken up by essentials”, then Revolution’s late night bars will not benefit.
Revolution Bars began in 1991 under the name Inventive Leisure. It operated 79 premium venues at its peak under its two brands, Revolution de Cuba and Revolucion de Cuba. The group currently has 58 bars, 22 Peach gastropubs and is likely to drop to around 40 bars.