Bar’s owners confirm closure
Sunderland’s branch of Revolution is to shut down permanently after the chain’s bosses ordered a series of closures in a bid to save the company.
As reported earlier this week, the firm said it was looking to close six of its venues, putting 130 jobs at risk, as it turned to creditors for help after the Government’s 10pm curfew cut its sales by more than a third.
Now it has confirmed Sunderland’s venue, in Low Row, which has remained shut following the easing of the lockdown rules, will not reopen after it was chosen as of of those bars to close for good.
The company also runs a
branch in North Road in Durham and Col ling wood in Newcastle, which will be untouched with the rescue plans.
Others to close are in Amer
ica Square and Clapham High Street in London, Birmingham, Bath and Solihull.
It is also seeking lower rents for three of its venues in the capital and others in Bristol, Reading, Cheltenham and Stafford.
The company said its subsidiary, Revolution Bars Limited, which has 50 venues in total and employs 2,500 staff, is to set up a company voluntary arrangement (CVA) as it tries to slash costs.
Creditors will vote on Friday, November 13, to accept the deal.
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.
However, 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.
Mr Pitcher added: “Throughout this extended period of distress caused by COVID-19, 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.”