Revolution bar to close as recent curfew hits bounce-back
A popular bar in Bath is set to close after the impact of the coronavirus pandemic on its wider business.
Revolution on George Street is one of six venues that the popular bar and restaurant chain is set to close across the country after recent curfew restrictions saw its takings drop by more than a third.
The company, which runs 50 bars across the country, is also set to close in Sunderland, Birmingham, Solihull, and London’s America Square and Clapham.
Creditors of the firm’s subsidiary company, Revolution Bars Limited, will vote on November 13 on whether to accept the deal as part of plans to enter a company voluntary agreement (CVA) to cut costs.
Revolution Bars’ comparative sales had been bouncing back before the curfew, reaching nearly 78 per cent of last year’s levels in the three weeks before the restriction was introduced. However, since then sales have fallen to less than half of last year’s levels, at just 49.4 per cent. If the CVA proposals are accepted, the group estimates that its annual cash flows will improve by around £2m a year over the next two years.
Chief executive Rob Pitcher said: “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.
“Throughout this extended period of distress caused by Covid19, 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.”