Revolution Bars owner issues warning over future
PUBLISHED: 13:18 25 September 2020 | UPDATED: 13:18 25 September 2020
Revolution Bars has announced the company could fall into administration following the government’s new Covid-19 restrictions.
The company - which has reopened 39 of its 74 sites, including the Ipswich branch in Old Cattle Market - said no decision had been made about its future but that it was weighing up its options.
Among the options being considered is an insolvency tool called a company voluntary arrangement (CVA) to reduce debts.
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In a statement to the London Stock Exchange, Revolution Bars said it raised cash from investors and extended loans with its banks in June.
However, the firm 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 £15million 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.”
The business furloughed 2,775 staff during lockdown.
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