Revolution Bars to go ahead with restructuring plan

Revolution Bars Group, the operator of the Revolution, Revolucion de Cuba and Peach Pubs brands, has announced that its restructuring plan – which was launched on 31 May – has been approved. 

The news comes after the group’s subsidiary, Revolution Bars Limited, which proposed the restructuring plan, was sanctioned by the Court last week (8 August).

The restructuring plan will enable Revolution Bars Limited to amend and extend its secured lending facilities, exit the leases of certain loss-making sites, and implement rent reductions on certain sites. 

The board expects this plan to deliver a “significant” annualised EBITDA improvement of approximately £3.8m. 

In addition, the restructuring plan aims to restore Revolution Bars Limited and the group to financial stability following the changes made to the late night bars market following the pandemic. 

Following completion of the plan, the business will operate 27 Revolution Bars, 15 Revolución de Cuba Bars, 22 Peach Pubs and one Founders and Co. site.

The restructuring plan is supported by the group’s secured lender, and delivered through the refinancing of the group’s banking facilities.

As announced on 10 April, the restructuring plan is also facilitated by a £12.5m fundraising. 

Following the sanction of the plan, admission of the new ordinary shares associated with the fundraising is expected to occur on or before 3 September 2024. 

The group maintains that the refinancing, fundraising and the restructuring are expected to stabilise its operations, reduce leverage, and allow the recommencement of the normal refurbishment cycle and the flexibility to explore new opportunities as they become available.

Rob Pitcher, CEO of Revolution Bars Group, said: “We are very pleased that the Court has sanctioned the restructuring plan for Revolution Bars Limited. 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.”

He added: “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 advisors who have assisted us in the development of  the plan.”