Owner of Edinburgh’s Revolution bar warns 10pm curfew could lead to closure
Revolution Bars, which has a venue on Chambers Street, announced the company could fall into administration following the government’s new Covid-19 restrictions.
One of the Capital's most popular cocktail bars is at risk of closure in the wake of the new 10pm curfews enforced on the hospitality sector.
Revolution Bars, which has 74 outlets across the UK, including a venue on Chambers Street in the heart of Edinburgh, said challenges to its recovery since the national lockdown had been "exacerbated" by the Government’s decision this week to impose tighter restrictions on opening hours.
The chain, which has reopened 39 of its 74 bars, said no decision has been made – but one option being explored is an insolvency tool called a company voluntary arrangement (CVA) to reduce debts.
The business furloughed 2,775 during lockdown.
In a statement to the London Stock Exchange, Revolution Bars said it raised cash from investors and extended loans with its banks in June, but warned: “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.
“Revolution has a strong balance sheet following the £15 million 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.”
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