TROUBLED bar operator Revolution is in talks over a potential sale to one of the leading players in Britain’s night-time economy.
Nightcap has expressed an interest in buying part or all of Revolution, which has a bar on Aberdeen’s Belmont Street, plus a Revolucion de Cuba nearby in The Academy.
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A number of private equity firms are also said to have been planning to submit offers, according to Sky News.
In a market update this morning, Revolution confirmed that it has held an “exploratory meeting” with Nightcap to discuss “a range of possible transactions” including a possible offer for the entire business.
Nightcap – which has 46 venues and 11 brands operating across England – now has until the end of the month to confirm its intention to make an offer, or walk away.
Revolution Bars announced this week that it was postponing its annual meeting, which had been scheduled to take place today, to “provide additional time to fully explore its strategic options”.
The company has received commitments from investors to raise a £12.5million lifeline as it prepares to launch an insolvency mechanism called a restructuring plan. Under this process, it would close a significant number of venues, perhaps up to 20, resulting in hundreds of job losses.
The company is grappling with rising costs and a downturn in trading. Its stock, which is currently suspended, has slumped by nearly 75% over the last 12 months, and it now has a market valuation of little more than £6million.
If the restructuring plan fails to gain sufficient approval from creditors, the only viable alternative for the company would be a sale that would ascribe little value to its equity, or administration.
