StockMarketWire.com - Cocktail bar owner Revolution Bars said it had launched a company voluntary arrangement to reduce the size of its estate and rental cost base.

The CVA applied to subsidiary Revolution Bars Ltd (RBL), with operated 50 Revolution branded bars.

The company's Revolucion de Cuba branded bars and another four Revolution branded bars were operated by other entities and unaffected by the proposal.

Under the CVA, the company would exit six bars and obtain materially improved rental terms on seven others.

The remaining 37 bars in the RBL portfolio would not be materially affected.

An attendant RBL creditors' meeting was scheduled to take place on 13 November.

Revolution Bars said it had been trying to protect its ongoing viability since the UK first closed bars in March. These efforts included engaging with landlords of which, over the last seven months, two thirds had agreed to share of the rental burden.

'These arrangements cover a wide spectrum, but many comprise lease extensions or the removal of tenant break options in return for short-term rent relief,' the company said.

Revolution Bars said the latest government restrictions clouded its outlook and that it now expected the important Christmas trading period to be 'severely compromised'.

Any return to near normal levels would not be possible before next spring at the very earliest,' it added.

Revolution Bars said its lender, NatWest, had agreed to waive the defaults that arose from the CVA, which would otherwise mean that the group was in breach of certain undertakings.




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