Revolution Bars Group, the troubled chain that also owns Revolucion de Cuba and Peach Pubs, has rejected a takeover offer from rival company Nightcap.
In a statement released today, Revolution Bars stated that Nightcap’s bid was “incapable of being delivered” and did not align with the company’s current restructuring plans and fundraising efforts. Revolution Bars has been struggling financially and recently launched a sale process and announced plans to close 18 of its venues.
According to Revolution Bars, Nightcap’s non-binding proposal did not include the proposed £12.5m cash injection that the company has already secured from investors, including former Pizza Express chairman Luke Johnson. Instead, the offer would require two separate funding rounds from Nightcap.
The company stated that Nightcap’s offer was “highly conditional” and would also require assumptions related to support from Nightcap’s lenders. It also noted that the proposal involved time and cost pressures.
Revolution Bars said it would continue to move forward with its restructuring and fundraising plans, but remained “open” to considering future proposals from Nightcap or other firms. However, the company added that without the additional funding and cost savings from its proposed plan, it may face liquidity pressures from July onwards.
Meanwhile, Nightcap, which owns 46 bars in the UK, including the Cocktail Club and Dirty Martini chains, has not yet responded to Revolution Bars’ rejection of their offer.
In other business news, UK shops are seeing a return to “normal levels” of inflation, according to the latest data. And in a major development, 80 detectives are set to investigate the Post Office scandal, while an Indian pharmaceutical group is preparing a takeover of Nicotinell.
