UK's Revolution Bars explores CVA to tackle fresh virus curbs

© Reuters.

(Reuters) – Britain’s Revolution Bars (L:) said on Friday it is planning to reduce its outlets under a company voluntary arrangement (CVA) plan, after the UK government announced fresh COVID-19 curbs including shutting restaurants and pubs early.

The operator of 74 premium bars across the UK said it has been working with advisers to assess various strategic options for the firm as it has been hit by a challenging environment.

Shares in the company tumbled 18.6% to 9.2 pence by 1100 GMT.

Prime Minister Boris Johnson on Tuesday ordered all pubs, bars, restaurants and other hospitality sites to close at 10 p.m. from Thursday, with only table service allowed, to battle a fast-spreading second wave of COVID-19

The government has extended a cut to value-added tax for hotels, cafes and restaurants until March 31 to support the struggling sector.

“The long-term nature and potential impact of the latest operating restrictions means that it must consider all necessary options to ensure that its business remains viable,” Revolution Bars said.

Pub operator JD Wetherspoon (L:) said it could cut 400-450 jobs at sites at six airports, including London’s Heathrow and Gatwick, because of a large drop in passengers.

Mitchells & Butlers has also said the future remains challenging and uncertain because of the new curfew.

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