Revolution Bars announce it could go bust as Sunderland venue remains closed
Bosses of Revolution Bars have announced the company could go bust after the Government’s new Covid-19 restrictions hit the hospitality sector.
The Sunderland city centre venue, in Low Row, remains closed and has yet to reopen following the lifting of lockdown restrictions back in July.
Now Revolution Bars, which has opened its venues in Durham and Newcastle, is assessing options for a rescue plan.
It comes as Government restrictions implemented throughout the UK require all leisure and entertainment venues to close at 10pm.
These restrictions were already brought in last week (Friday, September 18) in numerous North East local authority areas.
The bar chain, which has reopened 39 of its 74 bars, said no decision has been made but one option being considered is an insolvency tool called a company voluntary arrangement (CVA) to reduce debts.
The business furloughed 2,775 staff during lockdown.
In a statement to the London Stock Exchange, Revolution Bars said it raised cash from investors and extended loans with its banks in June, but warned: “Further to the continuing challenging trading environment and exacerbated by the further Covid-19 related restrictions announced by the Government earlier this week, the board of Revolution confirms that it has been working with advisers to assess various strategic options for the group.
“Revolution has a strong balance sheet following the £15 million equity fundraising and the extension of its banking facilities announced in June but the board believes that the long-term nature and potential impact of the latest operating restrictions means that it must consider all necessary options to ensure that its business remains viable.”