Revolution and Revolucion de Cuba owner warning over future
PUBLISHED: 12:09 25 September 2020 | UPDATED: 12:13 25 September 2020
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Revolution Bars has announced the company could fall into administration following the government’s new Covid-19 restrictions.
The group owns venues including Revolution and Revolucion de Cuba in Norwich’s Tombland.
The 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.
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This would see sites shut to cut costs.
The business furloughed 2,775 during lockdown.
In a statement 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.”
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