Revolution Bars Group, which has 5 Revolution branded bars in Scotland has announced a £12.5m re-structuring plan that would enable the company to build profit and prevent it from running into any liquidity problems next year.
The company already has a firm placing and subscription to raise £10.5m of the £12.5m and this is being supported by several cornerstone investors including Luke Johnson who is contributing £3m, with a further £3m from Robus Capital Management and £3.5m from three key existing shareholders. The news boosted the share price after trading started again today following the release of the interim results, which show improved sales of £72.3 million and a pre-tax profit of £3.1 million.
The restructuring plan could affect up to 38 Revolution branded sites, including six sites that are already closed. It means that the business may seek to close 18 sites, as well as considering site cost savings on others.
Although the plan highlights the priority of the Peach and Founders & Co brands, if approved, it could also involve the expansion of the Revolucion de Cuba brand, and, with 2 sites already in Scotland in Glasgow and Aberdeen, this could mean an Edinburgh location in the future.
In tandem with the announcement of the restructuring plan, the company has also said that it has started a formal sale process to explore if a sale of all, or part, of the business, could provide a more beneficial outcome for stakeholders, although it has said that it is not currently in any discussion with a potential buyer and there is no guarantee that one will be found.
Luke Johnson, formerly chair of Pizza Express and Patisserie Valerie, is expected to join the board, initially taking on the role of non-executive director with the intention of him becoming Chairman later this year.