Revolution Bars Group has confirmed it is considering closing some sites to stay fit for the future amid the pandemic.
The group, which has a string of bars and restaurants across the UK including Revolucion de Cuba and Revolution in Newcastle city centre, is reported to have called in business advisors Alix Partners to weigh up its options.
The company's first bar in the North East was opened many years ago in Collingwood Street, Newcastle.
Since then it has opened a branch of its sister chain Revolucion de Cuba in nearby Cloth Market, a bar in the Victoria Buildings in Sunderland and one by Durham's Framwellgate Bridge.
Now the firm has confirmed it is looking at closing some venues as part of a company voluntary arrangement (CVA).
It insists it has a strong balance sheet, but says the latest restrictions and their “long term nature” have forced them to consider all options to make sure the firm can stay viable.
The move follows the latest coronavirus restrictions which are hammering the hospitality sector, including the nationwide 10pm curfew for all bars and restaurants and the rule which advises just one household or support bubble to sit together in bars and restaurants, where table service only is now mandatory.
The chain, which furloughed 2,775 staff during lockdown, has reopened 39 of its 74 bars and of its North East venues just Sunderland remains temporarily closed.
The firm released a statement is response to the press speculation, saying: “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.
“The board is currently evaluating the potential impact of the latest developments on the group’s business before deciding what the next steps should be. One
of the potential options being explored is a reduction in the size of the group’s estate by the implementation of a company voluntary arrangement (CVA).
“No decisions have yet been made and there is much further work to complete before the board decides on any appropriate course of action.
“Revolution has a strong balance sheet following the £15m 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.”