Revolution Bars has announced its company voluntary arrangement (CVA), which will see six of its sites close, has been approved.
It comes after the Ashton-under-Lyne headquartered group announced it had launched a CVA of its subsidiary RBL, which operates 51 Revolution branded bars, on October 27.
The group, which operates the Revolution and Revolucion de Cuba brands, first announced it was considering cutting its estate in September, as the long-term impact of the latest Covid-19 restriction meant it “must consider all necessary options” to ensure the business is viable.
The group said it estimates its cash flow - before the approximately £1.1m one-off cost of the CVA - will improve over the two-year period of the CVA by some £4m.
Chief executive Rob Pitcher said: “I’m grateful for the support of our creditors in approving the CVA of Revolution Bars Limited providing the opportunity for the business to move forward with much greater certainty for all its stakeholders.
“This is a positive step in the right direction for the business.”
Mr Pitcher said, while it welcomed government support, the hospitality sector had been “severely affected” by its “often illogical, inappropriate and disproportionate response to the coronavirus pandemic”.
He said: “To plan ahead, we still require guidance on how the sector can ultimately exit the current restrictions in a safe and timely manner.
“With phase one of the vaccine rollout potentially commencing in December and set to protect 99 per cent of the UK’s at-risk population, we have some potential indication of a timeline to normality which will save jobs and allow us to resume delighting our customers again .”
The group also announced that, following the approval, its chief financial officer Mike Foster has indicated he won’t seek re-election at its AGM on December 22, and will step down from the board at the end of the meeting.
Danielle Davies, previously chief financial officer at Footasylum and director of finance at Pets at Home, will be appointed as chief financial officer immediately following the AGM.
