Revolution Bars’ rivals eye bids for struggling chain’s assets | Business News

Some of the key players in Britain’s night-time economy intend to cherry-pick the assets of Revolution Bars, the London-listed leisure group.

Sky News has learned that Nightcap and Rekom, two rival bar and nightclub operators, have expressed interest in buying part or all of Revolution.

Several private equity firms are also said to be planning to submit bids before the deadline set by Revolution’s advisors on Wednesday.

The scope of Nightcap and Rekom’s interest was unclear and it was possible that one or both would not submit formal offers.

Revolution Bars announced this week that it would postpone its annual meeting, which was scheduled for Thursday, to “provide additional time to fully explore its strategic options.”

The company has received commitments from investors to raise a £12.5m lifeline as it prepares to launch an insolvency mechanism called a restructuring plan.

As part of this process, a significant number of locations would close, resulting in the loss of hundreds of jobs.

The company, owner of Revolución de Cuba and Peach Pubs, is facing rising costs and a recession in trade.

Its shares, which are suspended, have fallen almost 75% in the last 12 months and now have a market valuation of just over £6m.

Revolution Bars wants to close about a quarter of its 80 locations.

If the restructuring plan does not receive sufficient approval from creditors, the only viable alternative for the company would be a sale that would place little value on its capital or management.

Around 2,500 people work for the group, which was in London for the second time in 2015.

Revolution said in January it would close eight sites, blaming declining spending among younger consumers.

Revolution declined to comment, while Nightcap and Rekom did not respond to a request for comment.