Troubled Revolution Bars is close to finalising around £10m of emergency funding that would provide a stay of execution as it draws up plans that would result in the closure of more bars.
The ailing business, which owns Revolution, Revolución de Cuba and Peach Pubs, told investors last month it was “actively exploring” all options to keep the business afloat.
It said this could include a “restructuring plan” for certain parts of the group or a sale of “all or part” of the company.
Sky News reported today that its board could announce that it has secured around £10m in an equity funding commitment from investors including Luke Johnson, the chairman of Gail’s, as soon as tomorrow.
The cash call will help the business progress in a restructuring plan, which will likely lead to bar closures.
The firm has already closed eight underperforming sites this year. Bars across Southampton, Reading and Liverpool were impacted, but no sites in London closed.
Today’s development comes just one week after Revolution had its shares suspended from the London stock exchange after it failed to publish its interim results.
The firm lowered its profit expectations back in January after warning cash strapped youngsters ditching night outs was continuing to chip away at its earnings.
In a trading update, the nightlife operator said it expected EBITDA to be £3-3.5m, down from a range above £5m.
Revolution has been approached for comment.