130 jobs at risk as Revolution bosses plan closures
The boss es of Revolution Bars are looking to close six branches, putting 130 jobs at risk.
The chain has turned to its creditors for help after the Government’ s 10 pm cur few cut its sales by more than a third, having warned the move would put its business at risk, with a tough Christmas period ahead.
Its bar in Low Row in Sunderland remains closed, while its venues in North Road in Durham and Collingwood Street in Newcastle are open.
They are only able to take bookings of up to six people from the same household under the Tier 2 rules.
The company has not said which six bars of the 50 it has across the UK will close.
The firm, which employs around 2,500 people in total, said its subsidiary, Revolution Bars Limited, is to set up a company voluntary arrangement (CVA) as it tries to slash costs.
Creditors will vote on November 13, to accept the deal, which includes plans to reduce rents at seven bars in addition to the closure plan.
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.”
Revolution Bars’ comparative sales had been bouncing back before the curfew was put into place, reaching nearly 78% of last year’s levels in the three weeks before the restriction was introduced. Since then sales have fallen to less than half of last year’s levels, at 49.4%.
The company said it expects the important Christmas period to be “severely compromised” and that it will not be possible to return to “near normal levels” before spring at the earliest.