Major bar chain could close 12 MORE sites after already shutting six – following ‘secret talks’ about sale
A POPULAR chain has announced plans which could involve closing up to 12 bars after six have already shut.
Revolution Bars Group has plans for an overhaul which could see 12 of its bars shut down for good.
The firm is also considering whether putting itself up for sale would be better than restructuring.
A potential restructuring could include the closure of dozens of bars.
If bars close it’s likely hundreds could be facing job cuts.
The chain recently revealed it has been dealing with cost of living pressures which were affecting its sales.
The group owns 58 bars and 22 gastro pubs and also owns other chains such as Peach Pubs and Revolucion de Cuba.
In a bid to save the business, the chain said it was planning to raise £12.5 million through fundraising.
This would take place alongside cost savings which could include offloading its loss-making sites, which it expects to be 18 bars, including six which are already closed.
It is also mulling over a “secret” sale which would be more beneficial to shareholders.
The chain is not currently in any discussion with a potential suitor and says it is not certain an offer will be made.
It comes after Revolution Bars had its shares suspended from the London Stock Exchange earlier this month.
This sent the company shares pricey jumping by 40%.
The Sun has reached out to Revolution Bars for comment and for the full list of potential branches closing.
Revolution Bars revealed in January it would have to close eight of its boozers, and blamed younger customers spending less than they used to.
But, in the same months, it said it had had its best Christmas trading period for four years.
The chain has said that it will “significantly reduce expenditure” and put back all refurbishments despite its “best festive period since 2019”.
If it does not go ahead with fundraising or make cost savings from restructuring, then the firm said it expects to face “liquidity pressures” next year.
What is happening in the hospitality industry?
Food and drink chains in general have been suffering in recent months as the cost of living has led to fewer people spending on eating out.
Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.
Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny’s closing branches.
Some chains have not survived, Byron Burger fell into administration last year, with owners saying it would result in the loss of over 200 jobs.
Pizza giant, Papa Johns is shutting down 43 of its stores by next month.
Tasty, the owner of Wildwood, said it will shutter the sites as part of major restructuring plans.
The brand plans to close 20 loss-making restaurants after a “challenging” start to the year.
Britain’s biggest pub company, Stonegate, has raised fears about its survival as it races to plug its debts.
Stonegate owns 4,432 sites across the UK under the Slug & Lettuce, Be at One, Sports Bar & Grill brands and 350 traditional style pubs under its “Proper Pubs” banner.
Retailers closing stores in 2024
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online are also taking a toll, and many high street shops have struggled to keep going.
Here’s a list of all the big-name brands closing stores this year:
- Argos – The brand announced plans to close 100 standalone UK branches last year as it looks to move away from the high street and focus on expanding its presence in supermarkets.
- B&Q – The chain has over 300 shops across the UK, so chances are you have one near you, but some stores have closed in recent months.
- Boots – The health and beauty chain announced that it would be closing 300 stores last July. Closures are ongoing and this will see the retailer’s estate reduced from 2,200 to 1,900 shops.
- Clintons – Clintons mulled plans to close 38 shops in a bid to avoid insolvency late last year. We’ve listed the stores affected.
- Costa Coffee – The caffeine giant has around 2,000 sites nationwide, so chances are you’ll have one near you. The chain has shut the doors to dozens of its sites recently. We’ve revealed which stores are due to close this year.
- Iceland – The supermarket has more than 900 stores but closed nearly two dozen sites in 2023, and more selected shops are due to shut.
- Lidl – The supermarket, which has 950 stores, is changing up shop locations, which has meant that some stores have to close. But the retailer is also looking to open 12 new supermarkets.
- M&S – M&S, which runs 405 stores across the country, has been closing a string of branches across the country in a blow for shoppers. It’s not all bad news, though, because the chain also has big plans to open dozens of new shops as well.
- Trespass – The firm announced in July last year that it was closing six branches, but more are on the way.
- WHSmith – The retail giant, which runs over 1,100 stores, has shuttered eight stores since March 2023, but more are coming.
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