Revolution Bars to close six sites after curfew eats up a third of sales
The firm’s subsidiary will launch a company voluntary arrangement next month.
The firm’s subsidiary will launch a company voluntary arrangement next month.
The deal will see 5,000 jobs saved, but 29 restaurants will close.
The chain, which operates 74 bars, has said it is a considering a company voluntary arrangement to reduce debts.
The retailer is also set to put £40 million of new funding into its operations.
It comes days after rival Pizza Express approved the closure of 73 of its own sites.
The chain is negotiating a company voluntary arrangement restructuring deal after facing “significant disruption” from the coronavirus pandemic.
The company warned that it could be forced to consider ‘less favourable alternatives’ if creditors reject restructuring proposals.
The chain said 89% of its creditors voted for its Company Voluntary Arrangement (CVA) restructuring deal.
The chain was founded by former Masterchef winner Thomasina Miers and Mark Selby.
The retailer will field a vote on a CVA on September 15 after sealing a £440 million debt-for-equity swap.
Sources close to the process told the PA news agency that a ‘handful of stores’ could cease trading.
The chain said up to 1,100 jobs were at risk as it tries to stabilise its business in the wake of the Covid-19 shutdown.
The high street fashion retailer said it has accelerated plans to shake-up its operations after being impacted by the virus.
It said that sites earmarked for closure are ‘no longer financially viable’ and have unsustainable rental costs in the current trading environment.
The move comes just a month after it had already said it would cut 250 head office staff as part of cost-cutting measures.