Business

Revolución de Cuba owner warns it could shut sites to stave off collapse

Revolución de Cuba on Arthur Street, Belfast.

THE owner of the Revolución de Cuba bar in Belfast city centre has warned it could shut sites as part of a radical restructuring to stave off collapse amid fears it will take a heavy hit from fresh coronavirus restrictions.

Revolution Bars told shareholders on Friday it is assessing restructuring options after challenging conditions were "exacerbated" by the latest measures introduced to fight the pandemic.

The company said it is evaluating the potential impact of the restrictions "before deciding what the next steps should be".

The chain, which operates 74 bars, said one option being considered is an insolvency tool called a company voluntary arrangement (CVA) to reduce debts.

Revolution furloughed 2,775 people at the height of lockdown after it was forced to shut all its bars.

The company has reopened 62 of its bar sites across the UK.

It is understood it's working with insolvency specialists at AlixPartners on the process.

Last year The Irish News revealed that JD Wetherspoon bought the Revolución de Cuba premises on Arthuer Street, previously known as Café Vaudeville.

The Revolution Bar Group originally bought the establishment in 2017 for around £2.5 million.

It’s understood Wetherspoon paid in excess of £3m for the former bank, which dates back to the 1800s and was once the head office for Dunville & Co.

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