Troubled hospitality group Revolution Bars has rejected a proposed offer from rival Nightcap, warning it is “incapable of being delivered”.
Revolution, which also runs the Revolucion de Cuba and Peach Pubs brands, launched a sale process and significant restructuring plans last month amid efforts to stay afloat.
The company’s restructuring plans include a £12.5 million fundraising and the closure of 18 venues.
Revolution Bar’s portfolio includes Revolución de Cuba on Belfast’s Arthur Street, which is leased from JD Wetherspoon.
The group said the non-binding proposal from Nightcap earlier this month did not include the proposed fundraising and would instead require two separate funding rounds from Nightcap.
It said the funding for its proposed £12.5m fundraising has already been secured, with backers including former Pizza Express chairman Luke Johnson, although it will need to gain shareholder backing at 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 involved time and cost pressures.
Nightcap runs 46 UK bars including the Cocktail Club and Dirty Martini chains.
Revolution said it will move forward in attempting to gain shareholder support for its restructuring and funding plan, but “remains open” to considering any future proposal from Nightcap or other parties.
The company 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 Q1 (July, August and September 2024) onwards.”
