Three bars facing sell-off as operator reveals challenges

Two bars in Aberdeen and another in Inverness may be put up for sale, their owner has revealed. London-listed operator Revolution Bars Group has mooted a sale of part or all of the group.

Responding to “recent press speculation”, Revolution said it had faced a period of external challenges that have impacted its business and trading performance.

The board is “actively exploring all the strategic options available” in an attempt to improve future prospects.

Revolution said: “These include a restructuring plan for certain parts of the group, a sale of all or part of the group and any other avenue to maximise returns for stakeholders.

“The company also confirms it is currently engaged with key shareholders and other investors including Luke Johnson in respect of a fundraising.”

Mr Johnson is a former chairman of the Pizza Express chain, the Royal Society of Arts and Channel 4.

Further announcements by Revolution will be made “as appropriate”.

The group stressed it was not currently in talks with, nor in receipt of an approach from, any potential suitor.

There are Revolution bars on Belmont Street in Aberdeen and Church Street in Inverness.

The courtyard at the Granite City’s Academy venue is home to one of the group’s Revolucion de Cuba cocktail bar and restaurants.

Revolution slashed its annual outlook earlier this year, saying younger customers were being disproportionately hit by the cost-of-living crisis.

Earlier this week, Sky News claimed Revolution may shut around 20 bars, equating to about onequarter of its total.

A source told the channel that the closure plan could result in “hundreds” of redundancies.

Revolution was founded in 1991 when two friends, Roy Ellis and Neil Macleod, opened a small bar in Ashton-under-Lyne, Greater Manchester.

The group now operates about 90 venues across the UK, employing more than 3,000 people.

But in a trading update in January, the company said it was shutting eight of its least profitable bars to mitigate losses.

Chief executive Rob Pitcher said: “Our younger customers are still feeling the disproportionate effect of the cost-of-living crisis and the national living wage will increase materially in April 2024.

“Therefore, we have taken the difficult yet ultimately beneficial step for the group to close several bars which are unprofitable.”

VENUE: Revolution in Belmont Street, Aberdeen. Picture by Scott Baxter.