Revolution Bars to shut down 25 venues as store closures ramp up: 'Very difficult!'
The bar chain is closing 25 venues
REVOLUTION BARS
Revolution Bars is set to shut down 25 sites in another blow to Britain's high streets.
Store closures have become the norm in recent years but the hospitality industry has also been hit by changes to consumer behaviour and the economy.
The bar chain's head confirmed he is “very pleased” to have secured High Court approval for the company's restructuring plan.
This has been put forward in the hope to prevent potential insolvency but has resulted in multiple closures.
In order for the restructuring plan to go ahead, the court had to sanction the proposal.
As part of the plan, multiple leases at loss-making bars which come to an end.
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High streets have been hit by a wave of store closures since the pandemic, on top of banks shutting down PAFollowing the overhaul, the company said it will operate 27 Revolution Bars, 15 Revolucion de Cuba bars, 22 Peach Pubs and one Founders & Co site.
As a result, Revolution Bars will be left with 65 venues in total.
By the end of the 2023 financial year, the hospitality chain had 89 sites including 46 Revolution Bars.
In recent months, Revolution cited that trading in bars was "undoubtedly impacted by the uncertainty and distraction of the restructuring process".
Chief executive Rob Pitcher gave an update as to the current trajectory of the business following the High Court's decision.
He shared: "The group is now well diversified across the key brands, providing a more secure financial base and we look forward to the future with improved optimism.
“We know this has been a very difficult period for all of our teams both in our sites and in our support office and I’d like to thank them for their support and resilience.”
Reports suggest that Revolution reached its target of achieving about £3million in earnings by June, before measures like tax and interest.
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Multiple venues will close down as part of the restructuring plan
PAWith the hospitality group's restructuring plan, Revolution hopes to be on stronger financial footing.
The business' has been detrimentally impacted by the economic hit to the nightlife sector following the Covid-19 pandemic.
According to the group, its bars were hurt by the cost of living crisis which resulted in less customers spending money in venues.
On top of this, regular train strikes had an impact on footfall of younger consumers.