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Fri 31st May 2024 - Revolution Bars Group ends FSP and launches restructuring and fundraising plan, administration ‘expected’ if it is unsuccessful |
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Revolution Bars Group ends FSP and launches restructuring and fundraising plan, administration ‘expected’ if it is unsuccessful: Revolution Bars Group – the operator of the Revolution, Revolución de Cuba and Peach Pubs brands – has ended its formal sales process and launched its restructuring and fundraising plan. It also warned that if this plan were to fail, a cash injection of £8.1m could be needed by the start of September, and in these circumstances, filing for administration would be “expected”. The group 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 (FSP). Earlier this week, the group said it had rejected an acquisition proposal from Nightcap after concluding it is “incapable of being delivered”. This led to an angry response from the owner of the Cocktail Club, the Adventure Bar Group, Dirty Martini and the Barrio Familia group of bars, which said it was “disappointed” by Revolution’s statement and does not intend to make an offer for the business. Revolution has now said the FSP has been completed and will today put the wheels of its restructuring plan in motion. “The FSP did not result in any proposals being made relating to the acquisition of the entire issued and to be issued share capital of the company,” the group said. “The board confirms that it is not in receipt of any approaches for the company at the date of this announcement. With the conclusion of the FSP, the company is no longer in an ‘offer period’ as defined by the City Code on Takeovers and Mergers and the disclosure requirements pursuant to Rule 8 of the Takeover Code are no longer applicable. However, for the avoidance of doubt, the M&A process, which, as previously disclosed, resulted in several proposals being received for the acquisition of certain of its subsidiaries and/or business and assets owned or operated by certain of the company's subsidiaries, will progress if the fundraising is unsuccessful and the restructuring plan is no longer capable of being progressed. As previously disclosed, none of the proposals presented (or any combination thereof) would result in a financial return to shareholders.” The statement went on to say: “Today, the group announces the launch of the restructuring plan in respect of the plan company. As previously stated, the restructuring plan would enable the plan company to restructure certain of its liabilities. This includes amending and extending the group's secured lending facilities, exiting the leases of certain loss-making sites, and proposing a rent reduction on certain other sites to enable them to return to profitability at a sustainable level. The board expects the restructuring plan to return the plan company to profitability (leading to a £3.8m improvement in group adjusted Ebitda in FY25) and therefore unanimously believes the restructuring plan for the plan company is in the best interests of all stakeholders. The practice statement letter (PSL) will today be sent to all creditors affected by the restructuring plan. The PSL provides detailed commentary on what would likely happen if the restructuring plan were not sanctioned by the court by the 15 August 2024. In those circumstances, the fundraising, which is conditional upon the successful implementation of the restructuring plan, would not conclude. Creditor support, which is dependent on the restructuring plan being successfully sanctioned, would cease, and in those circumstances, per management’s short-term liquidity forecast to the end of September 2024, the group is forecasting an immediate £0.7m funding requirement in the week ending 24 August 2024, with an estimated peak funding requirement of £8.1m in the week ending 7 September 2024. In those circumstances, it is expected the directors of the plan company and certain other group entities would file for administration to comply with their directors’ duties obligations and to protect the interests of creditors. The PSL also provides information in respect of the group’s expected financial performance. In particular, the group is forecasting a statutory loss before tax of approximately £15.0m in the year to 29 June 2024 under IFRS 16 after all exceptional items and impairments associated with the restructuring plan. This is consistent with the guidance provided in the company’s trading statement on 24 January 2024 of IAS 17 Ebitda of circa £3.0m-3.5m for the same period.” The group went on to say that it “notes” the announcement made by Nightcap yesterday (Thursday, 30 May) in which it confirmed that it does not intend to make an offer for the entire issued and to be issued share capital of the company. It added that shareholders are “strongly advised” to vote in favour of the fundraising resolutions at next month’s rearranged general meeting.
Premium Club members to receive next Multi-Site Database and videos from Excellence in Pub & Bar Retailing Conference today: Premium Club members are to receive the next Multi-Site Database and all the videos from the Excellence in Pub Retailing Conference today (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 Chris Stagg, who heads up the Revolution Bars Group-owned Peach Pubs, speaking about evolving and growing the business under new ownership, standing out in the premium pub market, and creating an award-winning culture. Meanwhile, Jonathan Lawson, chief executive of Liberation Group, discusses how the award-winning business has maintained its high standards while continuing to grow its mainland estate, the development of its bedrooms business as its targets a 700-bedrooms division, and the integration of the Cirrus Inns business, including its entry into the London market. 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.
Brighton Pier Group appoints former Punch Taverns, Bill’s and Ten Entertainment CEO as new NED: Brighton Pier Group has appointed former Punch Taverns, Bill’s and Ten Entertainment chief executive Dr Duncan Garrood as a senior independent non-executive director with immediate effect. Garrood has significant expertise in the consumer and leisure sectors with a career spanning over 40 years. He has board level experience of private and public businesses and currently holds the position of chief executive of Empiric Student Property, the FTSE 250 provider of premium accommodation and services to students at many of the UK’s top universities. Previously, he served as a senior adviser to Blue Crescent Capital, an independent private equity firm, and for the past six years, as chairman of Small Beer Brew Co, an independent low alcohol brewer in South London. Garrood was chief executive of Ten Entertainment between 2018 and 2020. Prior to this, he was chief executive of Bill’s Restaurants, overseeing 80 sites and 3,000 employees. Prior to joining Bill’s Restaurants, he was chief executive at Punch Taverns, the UK's second largest pub company with over 3,500 pubs. Garrood has further previously served on the board as president of MH Alshaya, where he was responsible for the group's food division, and before that, was regional vice president of SC Johnson. He began his career at Unilever, serving for over 20 years in a variety of management positions in the UK and China. He holds a PhD in Biochemistry from Imperial College, London. Anne Ackord, chief executive of Brighton Pier, said: “The board is delighted to announce the appointment of Dr Duncan Garrood as senior independent non-executive director. His significant sector and listed company experience will no doubt provide an invaluable contribution to the business and plans for growth.” Earlier this month, Brighton Pier Group said it expects to make £4.6m from the sale of three sites – with Brighton and Cambridge already sold and Manchester also set to be disposed of this year. This will offset the £4.9m impairment charges relating to the three sites reported in the group’s accounts for the year to 24 December 2023 and “positively impact 2024 reported earnings”, the group said. The group also completed a refinancing and paid off its covid business loans and said like-for-like are sales 5% down so far in 2024. However, it said trading this year is anticipated to be in line with market expectations and it has taken a number of positive steps across its four divisions to “enhance the group’s proposition going forwards”. The group reported revenue of £34.8m for the period, adjusted Ebitda of £4.3m and a pre-tax loss of £0.6m. It said the 2022 figures are not comparable as these were for an 18-month period, ending 25 December 2022. In that period, the group reported revenue of £58.9, adjusted Ebitda of £13.8m and a pre-tax profit of £7.2m. Brighton Pier Group features in the Premium Club Turnover & Profits Blue Book. Its turnover of £34.8m for the year ending 24 December 2023 is the 273rd 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 Premium Club 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.
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