Revolution is planning to close six of its bars permanently following a massive drop in revenue amid the coronavirus crisis.
The chain, known for its vodka and shot stacks, has announced that at least 130 jobs are at risk ahead of crunch talks with creditors next month.
Blaming the Government’s 10pm coronavirus curfew for costing its bars around a third of revenue, the company said its subsidiary, Revolution Bars Limited, would close six venues. It did not confirm which bars are set to be closed.
The chain said it would also reduce rents at seven other bars as part of a proposed company voluntary arrangement (CVA), which it hopes creditors will back at a meeting on Friday, November 13.
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In the three weeks before the curfew was introduced, the business’s bar sales were bouncing back to nearly 78% of last year’s levels. But in the five weeks since the curfew started, that figure has dropped to 49.4%, the company said.
Hospitality venues have repeatedly hit out at the 10pm curfew, suggesting it has dramatically hit their sales and in some cases made businesses unviable.
Revolution is the latest in a long series of bars and pubs to slash costs amid the crisis, with thousands of jobs being cut and many staff being put on furlough for months.
The company added that 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.
Chief executive Rob Pitcher explained: ‘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.’
He said the company had hoped ‘to be in a position to take advantage of opportunities that may arise once restrictions are lifted’.
Mr Pitcher continued: ‘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 Limited runs 50 sites across the UK and employs around 2,500 people.
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https://news.google.com/__i/rss/rd/articles/CBMiaGh0dHBzOi8vbWV0cm8uY28udWsvMjAyMC8xMC8yNy9yZXZvbHV0aW9uLXRvLXN0YXJ0LWNsb3NpbmctYmFycy1mb3JldmVyLWJlY2F1c2Utb2YtMTBwbS1jdXJmZXctMTM0ODU0NDUv0gFsaHR0cHM6Ly9tZXRyby5jby51ay8yMDIwLzEwLzI3L3Jldm9sdXRpb24tdG8tc3RhcnQtY2xvc2luZy1iYXJzLWZvcmV2ZXItYmVjYXVzZS1vZi0xMHBtLWN1cmZldy0xMzQ4NTQ0NS9hbXAv?oc=5
2020-10-27 08:19:00Z
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