Revolution considers rescue plan options

Bosses of Revolution Bars have announced the company could go bust after the Government’s new COVID-19 restrictions hit the hospitality sector.

The Sunderland city centre venue, in Low Row, remains closed and has yet to reopen following the lifting of lockdown restrictions back in July.

Now Revolution Bars, which has opened its venues i n Du rh a m a n d Newcastle, is assessing options for a rescue plan.

It comes as Government restrictions implemented throughout the UK require all leisure and entertainment venues to close at 10pm.

These restrictions were already brought in last week in numerous North East local authority areas.

The bar chain, which has reopened 39 of its 74 bars, said no decision has been made but one option being considered is an insolvency tool called a company voluntary arrangement (CVA) to reduce debts.

The business furloughed 2,775 staff during lockdown.

In a statement to the London Stock Exchange, Revolution Bars said it raised cash from investors and extended loans with its banks in June, but warned: “Fu r th e r to th e continuing chall e n g i n g trad i n g 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.”

It ad d e d th at i t h a s a strong balance sheet but that “the latest operating restrictions means that it must consider all necessary options to ensure that its business remains viable.”