The company behind Revolution bars has put itself up for potential sale in light of declining sales over the past three months.
The Revel Collective, which operates venues under the Revolution, Revolucion de Cuba, and Peach Pubs brands, stated that sales have been affected by cost-of-living pressures on its younger customer base.
The group, which rebranded from Revolution Bars last year, also mentioned being impacted by warm weather over the summer.
It informed shareholders on Friday that the group has now appointed advisers to conduct a strategic review of funding and other options to enhance its future prospects.
The Revel Collective said this would include a formal sales process to assess if any potential parties or investors are interested in purchasing the company.
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It clarified that no current discussions are ongoing with potential buyers.
The group carried out a major restructuring last summer, closing 15 unprofitable bars in an effort to improve its performance.
On Friday, company leaders said ongoing “challenging economic conditions” and “Government interventions in the last budget” have hindered its ability to enhance its performance since the restructuring.
“Actions taken to reduce costs and increase margins have not been enough to offset the negative impact of the autumn budget changes to the employer NICs threshold, minimum wage, and duty on spirits,” the company added.
In July, the company expressed optimism after observing signs of improvement.
However, leaders noted that revenue has been weaker than expected in the subsequent months due to weak consumer sentiment.
It stated that this was “particularly evident” among its younger customers, while the warm weather negatively impacted its bars business.
Revenues decreased by 7.4% to £26.3 million over the three months to September, driven by a 10.5% like-for-like decline in its bars business.
It stated this countered a “satisfactory” performance by its Peach Pubs business.
The company also revealed that its debts increased, rising to £25.3 million from £22.1 million at the end of June.
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