Greater Manchester-based Revolution Bars Group plc said the restructuring of its main subsidiary received High Court approval and it expected to report a full-year profit, excluding some items. 

Revolution said the subsidiary, Revolution Bars Limited, got its plan approved by the court on 8 August, as it looks to regain financial stability following changes to the bar market during the Covid pandemic.

The plan will allow it to restructure some of its liabilities, including amending and extending its secured lending facilities, exiting the leases of certain loss-making sites, and implementing rent reductions on other sites to enable them to return to profitability at a sustainable level. 

Following completion of the plan, the business will operate 27 Revolution Bars, 15 Revolución de Cuba Bars, 22 Peach Pubs and one Founders & Co site.

The company’s board expects the plan to produce annualised EBITDA improvement of about £3.8 million. 

“We are very pleased that the Court has sanctioned the Restructuring Plan for Revolution Bars Limited. The Group is now well diversified across the key brands, providing a more secure financial base and we  look forward to the future with improved optimism,” said Rob Pitcher, CEO of Revolution Bars Group. “We know this has been a very difficult period for all of our teams both in our sites and in our Support Office and I’d like to thank them for their support and resilience.”

For the current year, the company confirmed “expected EBITDA outturn at the FY24 financial year end of c. £3.0 million (under IAS 17 – after rental charges) and net bank debt as of 8 August of £23.8 million, excluding lease liabilities and before the receipt of the net proceeds of the Fundraising.”  

The company expects to publish its results for the 52 weeks ending June 24 in October.