The future of two bars in Aberdeen and one in Inverness is still up in the air as their owner, Revolution Bars Group, mulls options for the business.
London-listed Revolution Bars Group has been considering a sale of part or all of the group, among other options.
It revealed earlier this year it had faced external “challenges”/
These impacted its business and trading performance.
Chief executive Rob Pitcher said younger customers were “still feeling the disproportionate effect of the cost-of-living crisis”.
Where are the company’s bars in Aberdeen and Inverness?
Revolution operates about 90 venues employing more than 3,000 people across the UK.
Its bar and restaurant chains include Revolution, Revolucion de Cuba, Founders & Co, Playhouse and Peach Pubs.
There are Revolution bars on Belmont Street in Aberdeen and Church Street in Inverness. The Academy Centre in Aberdeen is home to one of the group’s Revolucion de Cuba cocktail bars and restaurants.
Updating the market today, Revolution said none of the 32 parties which had agreed to take part in a formal sale process (FSP) was interested in buying the business as a whole.
There was interest in buying parts of the business, potentially paving the way for a break-up of the group, but none of these proposals would deliver a financial return for shareholders, Revolution said.
It added: “The board continues to explore the FSP and M&A (mergers and acquisitions) process, alongside the company’s other strategic options.”
One route involves a restructuring
These other options include a fundraising, to be supported by existing and new shareholders.
But this would be conditional on, among other things, successful implementation of a restructuring plan by the group and the approval of shareholders at a general meeting.
Under these circumstances, Revolution would continue to explore other options that “may deliver a superior outcome”.
The company also said it was open to offers from rival bar operator Nightcap, which has previously expressed interest in buying part of the group. It did not take part in the FSP.
Restructuring plan details released last month include shutting 12 more sites, on top of the six it has already closed, and implementing rent cuts in order to restore profitability.
Revolutions biggest shareholders include Middle East investor Eldose Babu and information technology services entrepreneur Mark Ward, who own 16.21% and 10.22% of the business respectively.
The company was founded in 1991, when two friends – Roy Ellis and Neil Macleod – opened a small bar in Ashton-under-Lyne, Manchester.
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