Revolution is planning to close a number of its bars permanently following a massive drop in revenue caused the coronavirus crisis.
The company has announced a series of closures and redundancies ahead of crunch talks with creditors next month.
Blaming the Government’s 10pm coronavirus curfew for costing its bars around a third of revenue, the chain said it would close several sites, with one of its subsidiaries shutting six Revolution-branded bars.
It said it would also reduce rents at seven others as part of a proposed company voluntary arrangement (CVA) that it hopes its creditors will support at a meeting on November 13.
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In the three weeks before the curfew was introduced, the business’s bar sales were at nearly 78% of last year’s levels. In the five weeks since the curfew started, that figure has dropped to 49.4%, the company said.
Revolution Bars chief executive Rob Pitcher explained: ‘Throughout this extended period of distress caused by Covid-19, the group has sought to prioritise the health and wellbeing of its staff and customers, minimise its cash consumption, maintain good levels of liquidity to ensure its ongoing viability and to be in a position to take advantage of opportunities that may arise once restrictions are lifted.
‘The CVA proposed by the group’s Revolution Bars Limited subsidiary entity, if agreed by landlords, is another proactive step to lower outgoings to help safeguard the future of the group and improve long-term performance.’
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