leadf
logo-loader
viewRevolution Bars

Revolution Bars confirms reports it is considering restructuring amid new coronavirus restrictions

The firm said new UK government restrictions to control the spread of coronavirus, including a 10pm curfew on pubs and bars, had exacerbated the “challenging trading environment” caused by the pandemic

Revolution Bars - Revolution Bars confirms reports it is considering restructuring amid new coronavirus restrictions

Revolution Bars Group PLC (LON:RBG) has confirmed press speculation that it is considering a number of options for the business including a restructuring through a company voluntary arrangement (CVA).

A CVA is a type of legal agreement between a company and its creditors to allow its debts to be paid back in an agreed payment plan, it is often used by firms that are viable but are burdened by historic debt.

READ: Revolution Bars spins higher as trading comes in ahead of expectations, boosted by ‘Eat Out to Help Out’

Revolution said that the recent announcement of new government restrictions to control the spread of the coronavirus, including a 10pm curfew on pubs and bars, had exacerbated the “challenging trading environment” caused by the pandemic.

The board is currently evaluating the potential impact of the latest developments on the group's business before deciding what the next steps should be”, Revolution said in a statement, however it added that no decisions have yet been made.

The company also said it has a strong balance sheet following a £15mln equity raise in June, but the long term impact of the latest restrictions meant it had to consider “all necessary options” to ensure the business remained viable.

The news sent the firm’s shares tumbling 10.9% to 9.8p in mid-afternoon trading on Friday.

Quick facts: Revolution Bars

Price: 9.875 GBX

LSE:RBG
Market: LSE
Market Cap: £12.35 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Touchstone Exploration presents at the One2One Proactive virtual conference

Touchstone Exploration's (LON:TXP) Paul Baay pitches to investors at the Proactive One2One virtual conference. Touchstone Exploration Inc. is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. It is one of the largest...

2 days, 14 hours ago

2 min read