Revolution Bars is undergoing talks to sell off around a quarter of its venues, according to reports.
The London-listed hospitality group, which employs 2,500 people across the UK, has drawn up plans to axe roughly 20 of its underperforming bars, Sky News’ Mark Kleinman has revealed.
The group has also reportedly approached investors in a cash call to raise £10m, which is more than its market capitalisation of less than £7m.
In January, Revolution said it would close eight bars as young people scale back on nights out amid cost pressures.
Investors close to the matter have said that without selling off more bars, the group would face insolvency as the only alternative.
Shares in Revolution Bars have cratered 57 per cent over the last year.
The news comes as yet another blow for the struggling hospitality industry. At the start of the year Rekom UK, the country’s biggest nightclub owner, called in the administrators.
Just last weekend, Whitbread announced plans to sell about a third of its underperforming restaurants and pubs.
Apparently, Whitbread was close to offloading the business to Beverly Hills-based Platinum Equity but the deal collapsed after the two parties failed to agree on a price.
Now, bosses at the hospitality giant are said to have drafted in Christie & Co to sell between 30 and 50 of its worst-performing sites, City sources have said.
A Revolution spokesman declined to comment to City A.M..