Revolution Bars has rejected a proposed offer from rival Nightcap – describing its bid as “incapable of being delivered”.
The troubled chain, which also runs Revolucion de Cuba and Peach Pubs, launched a sale process and significant restructuring plans last month amid efforts to stay afloat – including £12.5m in fundraising and closing 18 venues.
Revolution said the non-binding proposal earlier this month did not include this proposed cash injection, and would instead require two separate funding rounds from Nightcap.
While the company says it has already secured a fresh investment of £12.5m – with backers including former Pizza Express chairman Luke Johnson – it will need to gain shareholder backing during a vote at its next general meeting.
The firm said the Nightcap offer would not work as it was “highly conditional”, required assumptions related to support from Nightcap’s lenders, and also involved time and cost pressures.
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Nightcap has 46 bars in the UK, including the Cocktail Club and Dirty Martini chains.
Revolution said it would move forward in attempting to gain shareholder support for its restructuring and funding plan, but “remains open” to considering any future proposals from Nightcap or other firms.
It added: “Without the additional funding proposed to be raised in connection with the fundraising and without the cost savings delivered through the proposed restructuring plan, the board anticipates that the group will face liquidity pressures from [July] onwards.”