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Revolution Bars Group PLC notes recent press speculation. 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. 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 confirms it is currently engaged with key shareholders and other investors including Luke Johnson in respect of a fundraising.
The Company continues to trade in line with management's expectations.
The Company is not in talks with, nor in receipt of an approach from, any potential offeror relating to an acquisition of the issued and to be issued share capital of the Company.
REVOLUTION BARS is undergoing talks to sell off around a quarter of its venues, Sky News' Mark Kleinman first reported.
The London-listed hospitality group, which employs 2,500 people across the UK, has drawn up plans to axe roughly 20 of its underperforming bars.
The group has also reportedly approached investors in a cash call to raise £10m, which is more than its market capitalisation of less than £7m.
In January, Revolution said it would close eight bars as young people scale back on nights out amid cost pressures.
Investors close to the matter have said that without selling off more bars, the group would face insolvency as the only alternative.
Shares in Revolution Bars have cratered 57 per cent over the last year.
The news comes as yet another blow for the struggling hospitality industry.
At the start of the year Rekom UK, the country's biggest nightclub owner, called in the administrators. While just last weekend, Whitbread announced plans to sell about a third of its underperforming restaurants and pubs.
A Revolution Bars Group spokesman declined to comment to City A.M.
RE: PRESS SPECULATION
REVOLUTION BARS GROUP PLC
Released 07:00:14 26 March 2024
Strange not showing this morning’s Rns?
Revenue isnt the problem
many high volume sales hospitality locations are being closed up and down the country.
Why? No profit.
I foresee a decade of failure for smaller / medium sized companies in the hospitality sector with only the very biggest with economies of scale surviving, and even they are in really trouble, they are running out of options to save costs.
many businesses are now have to restructure reletively senior retail management roles into minimum wage positions. its desperate stuff, and the hospotaslity sector is running out of ways to cut costs.
My wife had a food and drinks voucher to use so she booked in Manchester for last Saturday. Revolucion de Cuba on Peters St, just off Deansgate.
She booked for 4pm, which was a strange time, but i was informed it was the only available slot left for that day.
I presumed they probably had limited tables designated for food.
How wrong was i. At 4pm the place was packed with a DJ getting the dancing going. A good mix, including a hen party .
Left a 6ish and the place was still rocking.
If this is a regular Friday/Saturday then they can easily cope with quieter midweek days.
RBG just need to focus on the lower performing bars and shut the worst performers and the good ones will take care of themselves.
A man has been jailed for 10 years and eight months for blinding a father-of-two in a "sickening" glass attack.
Matthew Syron, 32, lost his sight after Gareth Dean, 37, smashed a bottle into his face at Revolucion de Cuba on Call Lane in Leeds on 27 December.
Dean, of Elm Tree Close in Leeds, had admitted causing GBH with intent.
The victim, a former Leeds Rhinos rugby league player who now lives in Australia, has since regained some blurred vision in one eye.
His attacker has 10 previous convictions for 15 offences, including serious violence, Leeds Crown Court was told.
...another decent buy in the offing today...
Someone trying to pump this one again?
I wouldn’t be surprised to see a takeover offer. Stonegate offered just over £100 million which Revolution rejected. This was in 2017, before the pandemic, but still shows how undervalued this currently is at £6.5 million MCap. I think for the right offer Revolution would consider selling the Bars to focus on the Peach Pubs / food side of the business themselves. Slightest whiff of an interest and the SP flys imo.
Great time to do it for a takeover or avg down. just hope we're not all left high and dry becasue of it.
£24k buy went through way above the ask. 2.74 paid when ask was at 2.60. SP on the move again. Someone accumulating, I wouldn’t be surprised to see a TR1 in the coming days - Eldose Babu increasing his position in the company ?
As a holder since IPO have seen some considerable pain here - but still find the pubs generally busy whenever I go.
Thinking ahead to the summer - what are thoughts on the estate and showing the Euros - usually a money spinner for the pubs but not sure if Revolution really show it. Also guessing Peach (having never been to one) are unlikely to show it given higher end food offering?
Not sure whether to have one last throw of the dice here but think it is at that stage.
500 - Gap the stock
900 - Let the stock trade freely
Can only guess on the other codes
Could mean a continuation of the slide in the sp or indeed the opposite...
First of all, apologies as I’m failing to understand this.
No big sells and the price has plummeted the last few days. Big sell or big buy incoming? Can’t get my head around this. Thanks
Interesting MM trades this morning. Sells outweigh buys yet sp is up a tad (I know this does not the true picture but...). Somebody thinks this is a bit low I reckon...
Let's see...
I hate to say it but this is looking like it will be sold out of administraion, and starting to look like a McColls situation where the business raised case to enhance the business so it was more like to be purchased out of administration. in McColls case share holders money was used to rebrand into a higher revenue shop format and pay debt. the business got purchased of admin after the business used shareholder money to help make it happen. here debt has been used to buy Peach as a carrot to a failing estate which at this stage looks like it will fail and got scooped up for peanuts of of admin. if the Directors play their cards right them may even get to keep their jobs, but retail investors would very likely get wiped out in such a situation. hence the share price. time is ticking this the new minimum wage hits the P&L.
Maybe, maybe not...lets see what the budget brings (March 6th). It is general election year after all...
https://www.which.co.uk/news/article/spring-budget-2024-what-it-means-for-your-money-aRzMQ1q7C9uy
Huge cost increases comming so on the back of little to no profit.
Game over.
Where I live the Revolution de Cuba bar seems to be doing better than the Revolution bar.The All Bar One down the road has just closed.All a bit grim really.
Revolution do quite well in uni cities as they can usually be 'rented' free for birthdays etc mid week and in main cities if the location is good they are still prospering - the one in Manchester Deansgate is always popular, the one a mile or so away near St Anne's Sq less so ( i would shut the latter).
Clearly the BOD must have the figures for each so they will know the worst performers. Maybe a 50% reduction is required as long as they are not tied to long leases.
I would hate to sell Peach, but it is a bolt on that could be easily disposed and would get the best price. I note when this was purchased average weekly revs per pub were 'approaching' £30k. Now we are told that on their best weeks the 22 have exceeded £1m a week so c£45k a week each. Hopefully the average weekly rev has increased accordingly.
They need to see all the dead wood quickly before the ship sinks
Shandy, I like the option in your last paragraph to raise the sp in the short term but, imo, they should be look at offloading all Revolution bars to guarantee survival over any term. The 18-30's brigade are not going to get affluent anytime soon, probably not this decade anyway.
Very disappointing and blaming this on train strikes is poor.
Going forward the immediate action i would take is to review all Revolution bars and get rid of at least the bottom 20% that are underperforming.
It seemed a strange decision to refurb and expand this brand just after covid when it has struggled for years.
de Cuba seems to be performing a bit better and is aimed at a higher age group so it appears less drastic action is required here.
I don't think it will come to it, but the other option is consider maybe later in the year is to sell Peach Pubs. While this was only purchased just over a year ago it has traded well and will be an attractive option. This was bought for £16m and the whole company is currently valued at half this amount, so even if they just got their purchase price back it will clearly boost the SP and improve the balance sheet. As most of the pubs are in the South, maybe a London pub operate such as Youngs will be interested - they recently bought City Pub Group for a lot more
It won't be the only company trying to survive this year...
https://www.theguardian.com/business/2024/jan/22/more-than-47000-uk-businesses-on-brink-of-collapse-warn-insolvency-experts
I nearly bought a lot of stock pre Xmas but glad I didn’t-Peach seems to be a good purchase but the main brand must be under serious pressure