By Ali Lyon
The nightlife hospitality chain Revolution Bars confirmed speculation today that it had held a meeting with competitor Nightcap regarding a possible sale.
The chain, which is listed on the London Stock Exchange and owns dozens of bars and pubs across the country, said the meeting regarded a “range of possible transactions including a possible offer for the entire issued and to be issued ordinary share capital”.
However, in a note to markets from the chain’s chief executive, Rob Pitcher, the firm also tempered expectations for a sale, saying that a firm offer was far from certain.
The news followed an update from the business last night about its funding issues. Revolution, which had been struggling with low sales and high levels of borrowing, went cap in hand to shareholders for more cash. It raised £12.5m before expenses by way of a placing on Tuesday as part of efforts to put the business back on a more stable footing.
UK-listed Nightcap has until 5pm BST on 30 May – 28 days from today – to make an offer or announce a firm intention to do so.
Confirmation of the meeting comes after it was revealed by Sky News that Nightcap and Rekom, another rival bar and nightclub operator, expressed an interest in buying part of Revolution. Private equity firms were also said to be circling the company.
Earlier this week Revolution Bars postponed its annual meeting, which had been scheduled to take place today (Thursday 2), so that it could get “additional time to fully explore its strategic options”.
The postponements follow what has been a challenging few months for the company and the sector in general, as the cost of living crisis forces consumers to stay at home and younger consumers swerve nightclubs.
The stock dropped by nearly 75 per cent in the past year before being suspended in early April when it failed to publish interim results on time. And in March, the firm confirmed it was looking at ‘strategic options’ to secure its future.
Before that, it said it would shut eight sites, with a view eventually to closing a quarter of its 80 venues.
