The group behind the Revolution, Revolución de Cuba and Peach Pubs brands said the plan, which was initially set out in April and launched at the end of May, will allow it to restructure certain liabilities associated with a subsidiary of the group (Revolution Bars Limited) and restore it to financial stability.
Under the terms of the restructuring, the group will exit the leases of around 15 loss making sites, which comes on top of the eight that were closed at the beginning of the year.
It will also implement rent reductions on certain other sites to enable them to return to profitability at a sustainable level, and amend and extend its secured lending facilities.
Following completion of the plan, the business will operate 27 Revolution Bars, 15 Revolución de Cuba Bars, 22 Peach Pubs, and one Founders & Co. site.
The Revolution board expects the plan to deliver a significant annualised EBITDA improvement of c. £3.8m.
“We are very pleased that the Court has sanctioned the restructuring plan for Revolution Bars Limited,” says Rob Pitcher, CEO of Revolution Bars Group.
“The group is now well diversified across the key brands, providing a more secure financial base and we look forward to the future with improved optimism.
“We know this has been a very difficult period for all of our teams both in our sites and in our support office and I’d like to thank them for their support and resilience.”
The restructuring plan is supported by the group’s secured lender and delivered through the refinancing of its banking facilities.
It is also facilitated by a £12.5m firm placing, subscription, placing and open offer.
“I would also like to thank the group’s wider stakeholders for their support, including our secured lender, current shareholders, our new and existing shareholders who have participated in the fundraising and all our advisors who have assisted us in the development of the plan,” adds Pitcher.
