Ashton-under-Lyne-headquartered Revolution Bars Group has confirmed it is considering cutting the number of bars it operates.
The group, which operates 74 bars across the UK under the Revolution and Revolución de Cuba brands, said the long-term impact of the latest Covid-19 restriction means it “must consider all necessary options” to ensure the business is viable.
Revolution said reducing its estate through a company voluntary arrangement (CVA) is among the options being explored.
The announcement comes after the group said this month the government’s Eat Out the Help Out initiative has helped its sales in August increase ahead of expectations - however it reported overall sales had decreased 27.5 per cent compared to last year.
The group said: “Further to the continuing challenging trading environment and exacerbated by the further Covid-19-related restrictions announced by the Government earlier this week, the board of Revolution confirms that it has been working with advisers to assess various strategic options for the Group.
“The Board is currently evaluating the potential impact of the latest developments on the Group’s business before deciding what the next steps should be.”
The groups said no decisions have been made.
“Revolution has a strong balance sheet following the £15m equity fundraising and the extension of its banking facilities announced in June but the Board believes that the long term nature and potential impact of the latest operating restrictions means that it must consider all necessary options to ensure that its business remains viable,” it added.
