Revolution Bars rejects Nightcap proposal

UK bar chain Revolution has described investment group Nightcap’s restructuring proposal as “incapable of being delivered”.

On 10 April, Revolution Bars Group announced a plan to restructure its business through an emergency fundraising, with expectations that it would close 18 sites. It also launched a formal sale process as an alternative to the restructuring plan.

Separately from the formal sales process, Nightcap was considering acquiring some or all of Revolution’s sites, subsidiaries, assets or brands.

In a statement, Revolution stated that Nightcap’s proposal would require the group to proceed with its restructuring plan but without the fundraising of £12.5 million (US$16m), which has already been secured, subject to a shareholder vote.

Instead, Nightcap’s proposal required two separate equity fundraisings. Revolution’s board advised this would be unworkable as the funding “would not be in place at the time of the planned launch”.

Revolution added that Nightcap’s due diligence process would add further to time pressures, and that additional funding would likely be required.

It concluded that there was “significant procedural driven risk and cost associated with the Nightcap proposal over and above the level of risk that applies to the existing plan”.

It added that it remained open to further proposals from Nightcap or other firms.

Revolution Bars operates 58 bars and 22 bars under the Revolution, Revolución de Cuba and Peach Pubs brands.

Last week (24 May), Nightcap announced it was aiming to raise up to £3.5 million (US$4.4m) to help reach its goal of becoming the nation’s leading bar group through acquisitions.

Its portfolio of UK bar chains includes Dirty Martini, which it acquired in June 2023; The Cocktail Club, which it purchased in January 2021; the Adventure Bar Group, which it bought in May 2021, and the Barrio Bar Group, which it acquired in November 2021.