Revolution received six offers separate to Nightcap including £16m for Peach business, secures High Court approval for restructuring plan: Revolution Bars Group – the operator of the Revolution, Revolución de Cuba and Peach Pubs brands – received six offers for the business during its sales process separate to the Nightcap proposal, it has been revealed. The best of these were £16m cash for the Peach Group and £10m cash for profit-making sites and assets within Revolution Bars and the Revolución de Cuba brand. But it was decided that the proposals could not be delivered in the time available and would deliver worse returns to creditors than restructuring the business. Revolution Bars Group rejected an acquisition proposal from Nightcap – owner of the Cocktail Club, the Adventure Bar Group, Dirty Martini and the Barrio Familia group of 46 bars – after concluding it was “incapable of being delivered”. The details were revealed as a High Court judge approved Revolution Bars Group’s restructuring plan, after arguing it was needed to save the business from collapsing into insolvent administration. Part of the group – Revolution Bars – is “heavily loss-making” and “deeply unprofitable”, the court was told. Lawyers for the business said it was forecast to “run out of cash” in August. At a hearing in London yesterday (Thursday, 8 August), Mr Justice Richards approved the plan, concluding it was “not unfair” to creditors, landlords and shareholders. The restructuring scheme will amend Revolution’s obligations under a fully drawn £30m revolving credit facility with NatWest and extend the time to pay its tax debt, its legal team told the judge. It will also feature the “right-sizing” of a portfolio of leases “in order to create a sustainable business”. Revolution Bars holds 48 leases linked to 43 sites across the UK, six of which – Southend, Torquay, Beaconsfield, Derby, Wilmslow and Liverpool St Peter’s Square – were no longer trading. Revolution Bars was “balance sheet insolvent” with assets of £49.6m but total liabilities of £118.7m, the judge was told. The business “continued to perform poorly” and when the restructuring plan was launched was forecasting a loss of £15m in the financial year to 29 June 2024. It is also £48.1m in debt to sister firm Inventive Service Company. Tom Smith KC, representing Revolution Bars, said: “With an unprofitable business and no cash, unless the restructuring is successful, the group companies will, save for the Peach Group, collapse into insolvency processes.” He said the plan would see £4m owed to NatWest written off and a repayment date extended from October 2025 to October 2028. Revolution Bars Group will have an “interest holiday” in 2024, while NatWest will receive warrants over 10% of the enlarged share capital of the parent company. A payment of £2m in HM Revenue & Customs tax debt will also be deferred to 6 September 2024. Smith said proposals to issue new shares in Revolution Bars Group had raised around £12.5m, but this was conditional on the completion of the restructuring plan. Smith said “a small number” of landlords had voted against the plan, adding that there had been “no attempt to articulate any reasons for their opposition” and “no reason has been advanced before the court as to why the plan should not be approved”. He added the restructuring plan received “overwhelming” support from creditors who cast votes at meetings in July. Following completion of the restructuring, the group will operate 27 Revolution, 15 Revolución de Cuba, 22 Peach Pubs and one Founders & Co site. Revolution Bars Group stated: “The refinancing, fundraising and the plan are expected to stabilise the group, reduce leverage, and allow the recommencement of the normal refurbishment cycle and the flexibility to explore new opportunities as they become available. As anticipated, trading during the latter part of the year ending June 2024 was undoubtedly impacted by the uncertainty and distraction of the restructuring process, the now concluded formal sale process, refinancing and fundraising collectively, which have been the main focus for the group’s board. However, we are pleased to be able to confirm the expected Ebitda outturn at the FY24 financial year end of circa £3.0m (under IAS 17 – after rental charges) and net bank debt as of 8 August of £23.8m, excluding lease liabilities and before the receipt of the net proceeds of the fundraising.” Chief executive Rob Pitcher said: “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. 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.”