The future of Revolution Bars seems no less certain following the latest update to the City on moves to safeguard the troubled hospitality chain's future.

The company has in recent weeks been “actively exploring all the strategic options available it”, including a sale of the business and restructuring plan, as its bid to maximise returns for shareholders. However, efforts to secure its potential sale to fellow bar firm Nightcap have appeared to reach a dead end.

Revolution, which is seeking to raise £12.5 million from investors alongside a sale process, told the stock market today that a “highly conditional” takeover proposal from Nightcap had been dismissed, stating that the approach was “incapable of being delivered”.

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The company, which runs scores of high street bars across the UK under the Revolution, Revolucion de Cuba and Peach Pub brands, said: “The Nightcap proposal would still require Revolution Bars Limited (the “plan company”) to proceed with the restructuring plan, but not the existing fundraising of £12.5m (the “fundraising”).

“However, following legal advice, the board has concluded that the Nightcap proposal is incapable of being delivered, which was communicated to Nightcap last week.

“There were a number of challenges to the delivery of the Nightcap proposal, which was a highly conditional proposal and which was subject to multiple equity fundraisings, assumptions regarding the support of the company’s and Nightcap’s respective lenders, material due diligence, as well as significant time, material cost, and potential untested legal and procedural issues”.

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However, the board of Revolution said that it "remains open to considering any future proposal from Nightcap or any other party, following completion of the restructuring plan, at which time the Company would have been recapitalised".

Revolution has felt the strain recent months as the hospitality sector has come under pressure from the rising cost of energy, labour, food and drink, which has coincided with the cost of living crisis. It reiterated today that, without the additional cash it is hoping to raise with the fundraising and the savings it hopes to achieve through a proposed restructuring plan, it anticipates facing liquidity pressures from the first quarter of its 2025 financial year, which begins in July.

Revolution warned of the risk of insolvency if its fundraising and restructuring proposals are not supported by shareholders at its forthcoming general meeting. However, it said that it had so far received a “significant level of support” from investors for its plans.

Shares in the company closed the day unchanged at 1.5p.