- Group has struggled, with bosses blaming consumer pressures and costs
- It is now weighing strategic options that could lead to the sale
Shares of Revolution Bars lost nearly 40 percent of their value this morning after the company said it was considering strategic options due to continued weak trading performance.
The London-listed group, which owns the Peach Pubs and Revolucion de Cuba brands, told investors it is “actively exploring all strategic options” to “improve its future prospects” after a “period of external challenges”.
It said this could include “a sale of all or part of the group”, a restructuring plan “for certain parts” of the business or a fundraising, with Revolution Bars in talks with chairman of Gail’s bakery chain and investor Luke Johnson.
Revolution Bars Stock fell 38.9 percent to 1.8p in early trade. They have now lost more than 99 percent of their value since their March 2015 IPO.
Last Orders: Reports suggest Revolution Bars could close about 20 of its worst-performing locations
The group’s statement was in response to overnight press reports that its solvency was at risk, with Revolution Bars said to be preparing for venue closures and job losses.
Sky News said on Monday that Revolutions Bars would cut about 20 of its worst-performing locations, putting its 2,500-strong workforce at risk.
Revolution Bars, which was relaunched in London in 2015 after being sold by previous owner Alchemy Partners, was forced to cut profit expectations in late January after a soft start to 2024 eclipsed its best Christmas trading period in four years.
Boss Rob Pitcher blamed the cost of living impact on younger punters as he warned of a significant rise in business rates and labor costs in the coming year.
Pitcher, who announced the closure of eight underperforming locations at the start of the year, said the recovery of the Revolution brand will take “more time than we previously anticipated.”
Revolution Bars told shareholders on Tuesday: ‘Following a period of external challenges that have impacted the company’s business and trading performance, the Board of Directors is actively exploring all strategic options at its disposal to enhance the future prospects of the Group improve.
‘These include a restructuring plan for certain parts of the Group, a sale of all or part of the Group and any other option to maximize returns for stakeholders.
‘The company also confirms that it is currently in discussions with major shareholders and other investors, including Luke Johnson, in relation to a fundraising.
‘The Company is not in discussions with, nor is it receiving any approach from, any potential bidder with respect to an acquisition of the issued and to be issued share capital of the Company.’
In short, Revolution Bars has struggled during its second stint on the London Stock Exchange