Revolution Bars Group PLC (AIM:RBG), the struggling hospitality group, surged 13% higher after it said it will no longer look for a buyer after its deal with Nightcap fell through and instead will undergo restructuring.
Today will see the end of the bar group’s formal sales process and the beginning of a reorganisation plan that the company says is “in the best interests of all stakeholders.”
Part of the plan, which aims to return the company to profitability, includes “exiting the leases of certain loss-making sites, and proposing a rent reduction on certain other sites to enable them to return to profitability at a sustainable level.”
A sales process was launched earlier this year as the company searched for emergency funding to keep part of its operations alive.
Suitors had appeared to line up for the London-listed firm, but it was Dirty Martini owner Nightcap who came closest.
This week, however, both parties walked away from the deal, with Revolution having rejected Nightcap’s offer.
Revolution said on Tuesday that its legal advisers suggested Nightcap's proposals would throw a screwdriver in the works of its restructuring as funding would not be in place in time for a planned relaunch.