Revolution Bars plans to close six of its sites, putting 130 jobs at risk, as it turns to creditors for help after the 10pm curfew cut its sales by more than a third.
The company said its subsidiary, Revolution Bars Limited, is to set up a company voluntary arrangement (CVA) as it tries to slash costs.
Creditors will vote on November 13 to accept the deal, which includes plans to close six bars, and reduce rents at seven others.
READ MORE: Pubs giant announces job cuts amid coronavirus
Chief executive Rob Pitcher said: "The CVA proposed by the group's Revolution Bars Limited subsidiary entity, if agreed by landlords, is another proactive step to lower outgoings to help safeguard the future of the group and improve long-term performance."
Revolution Bars' comparative sales had been bouncing back before the curfew was put into place, reaching nearly 78% of last year's levels in the three weeks before the restriction was introduced.
However, since then sales have fallen to less than half of last year's levels, at 49.4%.
The company said it expects the important Christmas period to be "severely compromised" and that it will not be possible to return to "near normal levels" before spring at the earliest.
Mr Pitcher added: "Throughout this extended period of distress caused by Covid-19, the group has sought to prioritise the health and wellbeing of its staff and customers, minimise its cash consumption, maintain good levels of liquidity to ensure its ongoing viability, and to be in a position to take advantage of opportunities that may arise once restrictions are lifted."
The subsidiary, Revolution Bars Limited, runs 50 sites across the UK and employs around 2,500 people. The company did not say which six bars are set to be closed.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here