Revolution Bars ‘explores restructuring’ amid reports of hundreds of job cuts
The business, which also owns Revolucion de Cuba, said it was considering options which could include putting itself up for sale.
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Your support makes all the difference.Revolution Bars has said that it is talking to investors about raising new cash and could put itself up for sale after a report emerged that it might be looking at cutting hundreds of jobs.
The chain, which also owns Revolucion de Cuba, said that it is looking at “all the strategic options available” having faced “a period of external challenges”.
Shares in the business dropped by as much as 57% as markets opened on Tuesday.
In January, the business slashed its annual outlook, saying that its younger customers were being disproportionately hit by the soaring cost of living.
The announcement came after Sky News on Monday evening reported that Revolution is considering a plan which could end with the closure of around 20 bars, approximately a quarter of its total.
The board is actively exploring all the strategic options available to it to improve the future prospects of the group
A source told Sky that the plan could result in “hundreds” of redundancies.
Revolution is speaking to investors in a plan to raise around £10 million, the broadcaster reported. On Monday, the company was valued at £6.6 million.
Revolution’s statement on Tuesday morning did not confirm plans to shut sites and cut jobs but bosses did say they were looking at restructuring parts of the group. They might also sell part or all of the business.
“Following a period of external challenges which have impacted the company’s business and trading performance, the board is actively exploring all the strategic options available to it to improve the future prospects of the group,” Revolution said.
“These include a restructuring plan for certain parts of the group, a sale of all or part of the group and any other avenue to maximise returns for stakeholders.”
The company also said it is engaged with “key shareholders and other investors” about raising cash. One of those is Luke Johnson, the businessman and former chairman of Pizza Express and the owner of Patisserie Valerie.
Mr Johnson currently chairs and part-owns Gail’s bakery. On Sunday, Sky News reported that his co-owners in the bakery chain are drawing up plans to sell their stakes.