Revolution bars in talks over potential takeover

Revolution Bars in talks with Nightcap over a potential takeover.

Struggling bar chain Revolution Bars Group (LSE: RBG) has confirmed they held discussions with rival Nightcap regarding a possible takeover deal.

The news comes after Revolution announced a restructuring plan that could see 18 bars closed due to cost pressures and reduced footfall.

Revolution’s share price rose sharply on Thursday but has fallen over 70% in the past year. Discussions with Nightcap, which owns popular chains like Cocktail Club and Dirty Martini, encompassed a range of potential transactions, including a full acquisition of Revolution. This follows previous reports suggesting interest from both Nightcap and nightclub operator Rekom.

The talks come amid Revolution’s financial difficulties. The company recently secured £12.5 million through a fundraiser and announced a potential sale process to secure its future. However, Nightcap is not currently participating in the formal sales process.

There is no guarantee a firm offer will be made, and Nightcap has until May 30th to make a formal announcement or walk away. Revolution has stated they will update shareholders on any further developments.

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