Struggling Revolution Bars announces takeover talks with rival firm Nightcap

The firms held discussions around “a range of possible transactions”, including a possible offer for the entirety of Revolution, which also owns Peach Pubs and Revolucion de Cuba venues.

Nightcap said in a statement later on Thursday morning that its options also include potentially buying certain sites, subsidiaries, brands or assets from the larger competitor.

The confirmation followed a report by Sky News that Nightcap and nightclub owner Rekom both expressed an interest in buying all or part of Revolution.

It comes weeks after Revolution announced a major restructuring plan which could see 18 of its bars shut down.

The firm said it had been hammered by cost-of-living pressures and regular train strikes affecting its younger customer base.

Revolution also raised £12.5 million through a fundraise to help support the plan, with backing from investors such as former Pizza Express chairman Luke Johnson.

The group also said it would assess a potential sale last month as it sought to secure its future.

It said in its latest update that Nightcap is not participating in the formal sales process announced at the time.

“There can be no certainty that any firm offer will be made for Revolution Bars Group, nor as to the terms on which any firm offer might be made,” the firm added.

Nightcap said in its separate statement: “The board believes that assessing the options is in line with the company’s ambition to create the UK’s leading bar group by consolidating the drinks-led premium bar segment of the UK hospitality sector through strategic acquisitions.

“The board considers that certain brands of Revolution Bars could be an excellent addition to the Company’s existing portfolio of brands.”

The news comes after Revolution Bars announced in January that it would be closing eight of its least profitable of its locations accros the UK.

This included Revolución de Cubas in Sheffield city centre, which has now closed down.

The other bars to close were: Revolution Bars in Beaconsfield, Derby, Reading, St Peters Liverpool and Wilmslow, Revolución de Cubas in Southampton and the Playhouse in Newcastle-Under-Lyme.

The group also said at the time that it was currently “working through redeployment plans to enable those team members affected to be offered alternative employment elsewhere in the Group.”

The closures left the group operating 58 bars and 22 pubs.

Speaking at the time, Rob Pitcher, CEO of the group, said: “Our younger customers are still feeling the disproportionate effect of the cost-of-living crisis and the national living wage will increase materially in April 2024. Therefore, we have taken the difficult yet ultimately beneficial step for the Group to close several bars which are unprofitable.”