Revolution Bars exploring options including sale

Responding to press speculation, it said: "Following a period of external challenges which have impacted the company's business and trading performance, the board is actively exploring all the strategic options available to it to improve the future prospects of the group.

"These include a restructuring plan for certain parts of the group, a sale of all or part of the group and any other avenue to maximise returns for stakeholders."

Revolution also said it is currently in talks with key shareholders and other investors including Luke Johnson about a potential fundraising.

"The company continues to trade in line with management's expectations," it said, adding that further announcements will be made, as appropriate.

Sky News reported late on Monday that Revolution - which owns Peach Pubs and the Revolucion de Cuba chain - was drawing up plans to axe around 20 of its worst-performing bars.

It also said the company had been sounding out investors in recent days about a cash call to raise around £10m, which is more than the current market capitalisation.

At 0930 GMT, the shares were down 47% at 1.52p.

Russ Mould, investment director at AJ Bell, said: "Hospitality had a tough time during Covid and the inflationary pressures of the last couple of years have only compounded the situation.

"This is the unhelpful context in which Revolution Bars operates and it’s not a major surprise to see the company confirm speculation it is looking to raise emergency cash and slash its workforce. The share price reaction suggests the market is expecting a discounted and highly dilutive fundraising."