Proactive Investors - Revolution Bars Group PLC (LON:RBG) said it is deciding whether to put parts or the entire business up for sale, after reports emerged that a major restructuring was on the way.
“Following a period of external challenges which have impacted the company's business and trading performance, the board is actively exploring all the strategic options available to it to improve the future prospects of the group,” the bar operator said in a statement on Tuesday.
“These include a restructuring plan for certain parts of the group, a sale of all or part of the group and any other avenue."
The AIM-listed company confirmed that shareholders and other investors, including former Pizza Express and Patisserie Valerie chairman Luke Johnson, were being engaged over the emergency fundraising.
Such plans would include sweeping job losses meanwhile, likely being focussed on the Revolution-branded chain, as per Sky's report.
Sky News reported on Monday that plans were being drawn up by Revolution to close a quarter of its venues and raise £10 million.
This followed Revolution revealing in January that it planned to shut sites on the back of tough trading, which it attributed to young customers facing cost of living pressures.
The chain then hit the market with a profit warning later in the month, which sent shares spiralling, as wage bill increases in April threatened to coincide with continued dampened spending.
Shares in Revolution plummeted 41.4% to 1.7p on Tuesday’s news.