Revolution Bars, the company behind popular brands like Revolucion de Cuba and Peach Pubs, has rejected a proposed offer from rival Nightcap, citing it as “incapable of being delivered.” The troubled chain, which has been facing financial difficulties, launched a sale process and significant restructuring plans last month in a bid to stay afloat.
The non-binding proposal from Nightcap, which was made earlier this month, did not include the proposed cash injection needed by Revolution Bars. Instead, it required two separate funding rounds from Nightcap, making it unfeasible for the company.
Despite the challenges, Revolution Bars has already secured a fresh investment of £12.5 million, with backing from former Pizza Express chairman Luke Johnson. However, the company will need to gain shareholder approval during a vote at its next general meeting to proceed with its restructuring and funding plans.
Nightcap, which operates 46 bars in the UK including Cocktail Club and Dirty Martini chains, may still have a chance to make a revised offer in the future. Revolution Bars stated that it remains open to considering proposals from Nightcap or other firms.
Without the additional funding and cost savings outlined in its restructuring plan, Revolution Bars anticipates facing liquidity pressures from July onwards. The company is determined to move forward with its plans and is actively seeking shareholder support to secure its future.