|
|
|
Thu 30th May 2024 - Nightcap ‘disappointed’ by Revolution Bars statement, does not intend to make an offer for business |
|
|
Nightcap ‘disappointed’ by Revolution Bars statement, does not intend to make an offer for business: Nightcap – owner of the Cocktail Club, the Adventure Bar Group, Dirty Martini and the Barrio Familia group of 46 bars – has said it is “disappointed” by Revolution Bars’ statement concerning a possible acquisition and does not intend to make an offer for the business. Revolution Bars Group – the operator of the Revolution, Revolución de Cuba and Peach Pubs brands – said on Tuesday (30 May) it had rejected an acquisition proposal from Nightcap after concluding it is “incapable of being delivered” and is now pushing ahead with its restructuring and recapitalisation plan. It comes after Revolution last month set out its proposed restructuring plans, including a £12.5m fundraise and the closure of 18 sites, alongside the launch of a formal sales process. “Nightcap notes, with disappointment the announcement by Revolution Bars of 28 May 2024 in which Revolution Bars rejected a non-binding proposal by Nightcap of a share for share offer for the entire issued and to be issued share capital of Revolution Bars,” a Nightcap statement said. “After encouragement by both Revolution Bars shareholders and Nightcap shareholders, the company engaged in discussions with Revolution Bars and invested significant time and resources to explore the possible offer. A non-binding proposal was submitted to the board of Revolution Bars on 17 May 2024 which, the board of Nightcap believes, presented an improved outcome for Revolution Bars’ shareholders and a significantly de-leveraged position for its creditors. At no point did Nightcap receive legal advice to suggest that this non-binding proposal was not capable of being delivered. The non-binding proposal did not include a fixed fundraising amount as Nightcap did not receive detailed financial information to help identify the cash requirements of Revolution Bars and the enlarged business until 21 May 2024. The board of Nightcap believes that the possible offer, if it had been implemented, would have seen Revolution Bars’ highly dilutive £12.5m fundraising (announced on 10 April 2024) replaced by a merger of the two businesses, allowing for Revolution Bars’ shareholders to suffer less dilution and achieve more value from their investment. The possible offer would have included a fundraising and the implementation of the restructuring plan, as already planned and outlined in the announcement by Revolution Bars in its announcement on 10 April 2024, to be followed by a combination of the Nightcap and Revolution Bars businesses as well as a sale of the Peach Pubs brand. Having received the non-binding proposal, the board of Revolution Bars and their advisers challenged Nightcap's proposal in relation to Revolution Bars own short term funding requirements, due to the extended period required for the combination of the Nightcap and Revolution Bars businesses to be implemented. On 23 May 2024, Nightcap was advised that, after careful consideration by the board of Revolution Bars, a number of its stakeholders and advisers, Revolution Bars were rejecting Nightcaps’ non-binding proposal. Nightcap respects that the board of Revolution Bars wish to pursue a different outcome, and as a result, Nightcap today confirms that it does not intend to make an offer for the entire issued and to be issued share capital of Revolution Bars. As noted in the Company's announcement of 22 May 2024, the board of Nightcap believes that with five acquisitions in just over three years it is very well placed to continue executing on its consolidation strategy. The board also believes that opportunities for further consolidation in the late-night sector will continue to arise in the coming year as the sector moves from incremental M&A activity to a fundamental structural transformation as many of the operators in the sector are going through significant change.” Revolution Bars said yesterday that it would be urging shareholders to vote in favour of its fundraising and restructuring plan at its rearranged annual general meeting next month. Nightcap features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members. Nightcap’s turnover of £135,943,000 for the year ending 3 July 2022 is the 261st highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.
Premium Club members to receive next Multi-Site Database and videos from Excellence in Pub & Bar Retailing Conference tomorrow: Premium Club members are to receive the next Multi-Site Database and all the videos from the Excellence in Pub Retailing Conference tomorrow (Friday, 31 May). The next Propel Multi-Site Database, produced in association with Virgate, provides details of 3,123 multi-site operators and is now searchable in seven main segments. The database features 915 (29%) operators from the casual dining sector, 766 (25%) pub and bar operators, 516 (16%) cafe bakery operators, 428 (14%) quick service restaurant operators, 250 (8%) hotel operators, 194 (6%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month and this edition includes 25 new companies. Premium Club members will also receive all the videos from the Excellence in Pub & Bar Retailing Conference. They include Susan Chappell, divisional director at Mitchells & Butlers (M&B), who is responsible for the All Bar One, Browns, Nicholson’s and Castle estates, which have an annual turnover of £500m, highlighting how M&B is evolving its business to stay abreast of trends in digital and premiumisation, and how its business transformational programme Ignite is delivering ongoing improvements. Meanwhile, James Brown, chief executive of BrewDog Bars, discusses the company’s growth so far in the UK and internationally, and its plans for the future. Premium Club members also receive access to five additional databases: the New Openings Database; the Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who's Who of UK Hospitality. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.
The Restaurant Group-owned Barburrito makes a loss: The Restaurant Group (TRG)-owned Barburrito bar chain made a loss in the period ending 1 January 2023. The 21-strong business, which TRG acquired for £7m in July 2022, made a pre-tax loss of £1,197,000 in the 66 weeks to 1 January 2023. In the 54 weeks to 26 September 2021, it made a pre-tax profit of £1,723,000. Turnover in the 66 weeks to 1 January 2023 was £21,829,000. In the 54 weeks to 26 September 2021, it was £11,159,000. The company said a direct comparison cannot be made due to the difference in accounting periods. No government grants were received, whereas £905,000 had been received in the previous period. No dividend was paid (2021: nil). “Following the company’s acquisition by TRG Leisure, the parent introduced a new IT system,” the business said. “As a result of the acquisition and this system transition, certain supporting documentation was lost. This missing information has resulted in the company’s auditor issuing a disclaimer audit opinion.” Upon acquiring the then 16-strong Barburrito, TRG said it planned to double the existing estate over the next four years. It opened its first new Barburrito since the acquisition in January 2023, in Aberdeen’s Union Square.
|
|
|
|
|
|
|
