Revolution Bars has announced the company may go bust following the Government's new Covid-19 restrictions hitting the sector and is assessing options for a rescue plan.

The chain, which has reopened 39 of its 74 bars, said no decision has been made but one option being considered is an insolvency tool called a company voluntary arrangement (CVA) to reduce debts.

The business furloughed 2,775 during lockdown.

From last night, new rules came in forcing bars and restaurants to stop serving customers after 10pm. Table service also became compulsorary.

These come on top of existing measures on social distancing and limits to the numbers of people who could gather in groups.

People pouring onto the streets last night after bars all stopped serving at 10pm

As well as new restrictions coming into force, the Government also announced yesterday a replacement for the furlough scheme and a that the VAT cut for pubs and restaurants would continue for six more months.

There were also changes to the business support loans scheme designed to give firms more breathing space.

However, that was not enough to stop Revolution issuing the warning.

In a statement to the London Stock Exchange, Revolution Bars said it raised cash from investors and extended loans with its banks in June, but warned: "Further to the continuing challenging trading environment and exacerbated by the further Covid-19 related restrictions announced by the Government earlier this week, the board of Revolution confirms that it has been working with advisers to assess various strategic options for the group.

"Revolution has a strong balance sheet following the £15 million equity fundraising and the extension of its banking facilities announced in June but the board believes that the long-term nature and potential impact of the latest operating restrictions means that it must consider all necessary options to ensure that its business remains viable."