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Revolution Bars Group PLC is propelling towards a strategic restructuring plan, supported by a £10.5 million fundraising effort. This comes even as the company is exploring the potential sale of its business.

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Revolution Bars Group PLC, which operates Revolucion de Cuba and Peach gastro pubs, has announced that it has received backing for a fundraising initiative. The goal of this move is to raise at least £10.5 million which will be utilised in executing a restructuring plan for the company. The company carried out a thorough evaluation of all strategic options before landing on this approach as the most favourable.

Fundraising Supported by Cornerstone Investors

The intention to raise £10.5 million through a firm placing and subscription has garnered support from several cornerstone investors. Renowned entrepreneur Luke Johnson is contributing £3 million towards this initiative. An additional £3 million is arriving from Robus Capital Management and £3.5 million is being offered by three key existing shareholders. This will be followed by a placing and open offer of up to £2 million. Both these methods are priced at 1p per share and their realisation is conditional upon the approval of the proposed restructuring plan.

Johnson, known for his former roles with Pizza Express and the now-collapsed Patisserie Valerie, is set to join the Revolution Bars Group board as a non-executive director. He is also set to take up the position of Chairman at the company’s annual general meeting in 2024.

Potential Sale of Business Still Under Consideration

Alongside these restructuring and fundraising efforts, Revolution Bars Group is still contemplating a potential sale of the business. A formal sale process has been launched to ascertain whether a sale of the company, or any of its business, assets and/or subsidiaries, could yield better returns for stakeholders than the restructuring plan. This dual approach shows the company’s commitment to maximising returns for stakeholders, while also keeping its options open to ensure the most beneficial outcome is achieved.

Revolution Bars Group has shown financial improvement with its interim results demonstrating increased sales of £72.3 million. The company also swung to a pre-tax profit of £3.1 million, contrasting a small loss reported the previous year. Despite this positive performance, the company’s shares have seen a significant decrease since the start of the year.

Outlook

While the fundraising and restructuring plan indicate a proactive approach to managing the ongoing business challenges faced by Revolution Bars Group, the potential sale of the business is equally significant. This suggests that the company is open to multiple strategic avenues, which could be beneficial in these uncertain times.

The support from cornerstone investors, including the notable contribution from reputable entrepreneur Luke Johnson, is a positive sign for the company. Their involvement not only brings needed funds but also adds a level of confidence and credibility to the restructuring plan and the future prospects of the company.