ICSM Business – Hospitality Insolvency News: 'down the hatch' fears grow over Revolution Bars Group as share price collapses

By Harry Mottram: The first sign a firm is in trouble is sometimes flagged up to obviously that nobody can miss it – especially their suppliers, lenders, landlords and staff. That is the situation today of the hospitality outfit Revolution Bars Group who operate the Peach Pubs and Revolucion de Cuba brands.

Its shares have been suspended from the junior AIM stock market AIM -for high risk start ups and entrepreneurial businesses as they breached the rules of the organisation. The firm has also seen a huge drop in business recording a massive drop in profits with a £22 million pound loss last year. Worse still was this year Revolution Bars revealed it could not publish its half-year results by the end of last month prompting major concerns.

The outfit has blamed more people working from home meaning the traditional Friday night office booze up in local bars no longer happens compared to previous years. Clearly Covid, energy costs, business rates, inflation and the Cost of Living Crisis have all taken their toll – but hospitality as a whole has been struggling in recent years.

The hospitality group had already shut down many of its bars and was looking at further restructuring and were in talks with potential lenders and existing investors like Gail's Bakery chairman and former Pizza Express co-owner Luke Johnson. Sky News recently reported that the group was looking to raise about £10million and shut 20 of its worst-performing establishments, equivalent to a quarter of all venues.

Ian Carrotte of ICSM Business said suppliers to the group need to be very cautious. He said: “Clearly there is an issue with the company and so our advice is to make sure they stick to your terms of business. When a firm fails to pay its invoices on time you must take action and put them on hold – it doesn’t matter who they are but you must protect your own cashflow.”

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