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.
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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.
Published at Fri, 25 Sep 2020 13:08:00 +0000-Revolution Bars confirms reports it is considering restructuring amid new coronavirus restrictions