THE investment group set to acquire venues from Revolution Bars Group is seeking to raise a £3.5million acquisition war chest this morning.
Nightcap – which owns and operates 46 premium bars throughout England – is assessing options to acquire sites, subsidiaries, assets or brands from Revolution, which is in financial trouble.
Today, Nightcap announced to the stock market that it saw a “once in a generation opportunity” to become market leaders in the night-time economy.
The firm is now looking to issue new shares to raise £3.5million, having already banked £750,000 for its expansion plans.
Sarah Willingham, CEO of Nightcap, said: “We believe that a once in a generation opportunity currently exists in the late night bar sector to create a substantial market leading group of the most popular and much loved late night bar concepts. It was always our intention to position Nightcap as the preferred consolidator in the premium bar sector and with this fundraising we intend to continue our efforts to create the UK’s leading bar group.
“A combination of businesses struggling with significant debt from the CV19 period, ongoing macro-economic challenges from the cost-of-living crisis, and rail strikes have all escalated and accelerated the opportunity for consolidation, as we see a number of companies from across the sector considering their future strategic options.
“It is core to our strategy to be present in the conversations that will shape the late night bar sector in the UK as we approach the next economic cycle, with a more positive outlook on real wage growth, lower inflation, coupled with anticipated lower interest rates, which is expected to lead to an improvement in consumer confidence.
“Over the last 18 months, we have built a robust and professional management and leadership infrastructure at Nightcap and our team is capable of doubling the number of bars that it manages without the need for Nightcap to make significant further investment.”
UK bar chain Revolution announced a plan to restructure its business through an emergency fundraising on 10th April, with expectations that it would close 18 sites. It also launched a formal sale process of its shares as an alternative to the restructuring plan.
Nightcap and Revolution have both confirmed they are in discussions, although Nightcap is not participating in the formal sales process for Revolution.
Revolution Bars operates 58 bars and 22 bars under the Revolution, Revolución de Cuba and Peach Pubs brands, including two in Aberdeen’s Belmont Street.