Leading players in Britain’s night-time economy are eyeing potential acquisitions from Revolution Bars, a London-listed leisure group. According to sources, two rival bar and nightclub operators, Nightcap and Rekom, have expressed interest in purchasing a portion or all of Revolution. Along with these competitors, several private equity firms are also reportedly preparing to submit offers before the Wednesday deadline set by Revolution’s advisers.
It is unclear at this time what exactly the level of interest is from Nightcap and Rekom, and it is possible that one or both may not follow through with formal proposals. This news comes after Revolution Bars announced a postponement of their annual meeting, originally scheduled for Thursday, in order to allow for additional time to explore strategic options.
As the company faces financial difficulties, it has received commitments from investors to raise a £12.5m lifeline as it prepares to utilize an insolvency mechanism known as a restructuring plan. This plan would entail closing a significant number of venues, resulting in a significant number of job losses. Revolution Bars, which owns popular establishments such as Revolucion de Cuba and Peach Pubs, has been struggling with rising costs and a decline in trading. As a result, its stock, currently suspended, has plummeted by nearly 75% over the past year, leaving the company with a market valuation of just over £6m.
With plans to close approximately a quarter of its 80 venues, Revolution Bars is facing a crucial period for its future. Should the restructuring plan not gain enough approval from creditors, the company’s only viable option would be a sale, which would likely result in a minimal valuation of its equity or administration. This could potentially affect the 2,500 employees who currently work for the group, which first floated in London in 2015.
When contacted for comment, Revolution Bars declined to provide a statement, while Nightcap and Rekom did not respond to requests for comment. The fate of Revolution Bars and its potential acquisition remains uncertain as the company navigates through these challenging times.
