Revolution Bars will have to reduce payroll costs, unprofitable trading sessions and ‘variable costs’ such as entertainment and door staff in order to mitigate the impact of COVID-19.
In a statement released this morning, the group said it has continued to perform in line with expectations for the 37 weeks to date (like for like sales up 1.1%) but has experienced a decline in revenue in the very recent days.
Following the Government’s recent announcements, it expects a material deterioration in trading performance for the rest of the financial period, and has therefore had to take action to remove cost and non-critical capex.
In addition to the reductions, other measures include a suspension in rent and deferral of business rates, and requests to defer PAYE and VAT payments.
Whilst the group welcomed the Government’s support for the business rates holiday announced yesterday, it said it “does not go nearly far enough,” and will hope for further measures in the coming days to provide assistance with payroll to gain surety for employees.
“At this difficult time, we are doing all we can to protect our business and our employees from the COVID-19 virus and any financial hardship its effects may have,” said Rob Pitcher, CEO. “We would welcome further Government support.”
“Whilst we face a very challenging period in the current financial year, we are determined to make the right choices for the Group, employees, shareholders and all other stakeholders.”
The group’s net debt position at the end of week 37 (last week) was £10.5m, and the board has said it will continue to monitor its funding requirements closely.
Revolution to cut payroll, hours and staff
In a statement released today, Revolution Bars has announced it will need to reduce payroll costs, unprofitable trading sessions and ‘variable costs’ such as entertainment and door staff in order to mitigate the impact of COVID-19. Other measures include a suspension in rent and deferral of business rates, and requests to defer PAYE and VAT payments, and it has said that whilst it welcomes yesterday’s Government announcement, these measures do “not go nearly far enough.”