Revolution Bars Group PLC plummeted almost 50% on Tuesday morning after confirming strategic options, such as a restructuring or sale, were being explored to improve its health.
Responding to reports that plans were being drawn up which could include job cuts, Revolution said ways were being looked to to improve the group’s prospects.
This includes sales of all or part of the group, a restructuring and emergency fundraising, including potentially from former Pizza Express chairman Luke Johnson.
“It’s not a major surprise to see the company confirm speculation it is looking to raise emergency cash and slash its workforce,” AJ Bell’s Russ Mould said, citing Covid and inflationary pressures.
“The share price reaction suggests the market is expecting a discounted and highly dilutive fundraising.”
Shares fell 47% to 1.52p.