26th Mar 2024 09:34
(Alliance News) - Revolution Bars Group PLC on Tuesday said it is mulling its options, including a possible sale of the company, as it fights with tricky market conditions.
Shares in Revolution Bars plunged 47% to 1.52 pence in London on Tuesday morning. It has a market capitalisation of GBP3.5 million.
The Manchester-based bar group, which operates the brands Revolution and Revolucion de Cuba, said it will embark on a restructuring plan and will consider the sale of all or part of the business.
It added, no such talks or approach from an offerer have occurred yet.
However, the company did confirm that it is currently in discussions with key shareholders and other investors, including Luke Johnson, over possible fundraising.
This follows an announcement in January that eight of the least profitable locations were to be closed. Chief Executive Officer Rob Pitcher said in January that younger customers were "still feeling the disproportionate effect of the cost-of-living crisis".
Sky News late Monday reported that secret plans were being drawn up by Revolution Bars to axe 20 of its worst performing bars. This would result in job cuts. Sky News also noted that Revolution Bars was scoping investor interest for a possible GBP10 million cash raise, more than double its current market value.
By Elijah Dale, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.