StockMarketWire.com - Revolution Bars Group is closing six bars as part of a CVA process announced on 27 October 2020.

At a meeting of creditors held today, the CVA process relating to the group's wholly owned statutory entity Revolution Bars Limited (RBL) was approved by 88% of creditors.

RBL includes 51 Revolution branded leasehold bars. Following the approval of the CVA, RBL will exit six bars imminently and reduced rental terms have been agreed in respect of seven other bars.

Currently, all of the group's English bars are closed until at least 3 December 2020 as a result of the latest UK government lockdown.

The group estimates that its cash flows before the one-off costs of the CVA are implemented will improve over the two-year period of the CVA by approximately £4 million.

Chief financial officer Mike Foster said he will not seek re-election at the group's upcoming AGM on 22 December 2020.

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. However, whilst we welcome the support government has given, the hospitality sector has been severely affected by their often illogical, inappropriate and disproportionate response to the coronavirus pandemic.

‘To plan ahead, we still require guidance on how the sector can ultimately exit the current restrictions in a safe and timely manner.’



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