Nightcap has formally withdrawn from discussions regarding a potential rescue deal for Revolution Bars, its competitor in the UK bar space.
Revolution Bars, known for its Revolucion de Cuba and Peach Pubs brands, has deemed the proposal from the Dirty Martini chain owner "incapable of being delivered."
Nightcap expressed its disappointment over the collapse of the merger talks with Revolution Bars.
The announcement comes in the wake of Revolution Bars' April 2024 statement about a sale process and significant restructuring to avoid insolvency.
In May, the company confirmed it was in discussions with Nightcap about a possible acquisition.
Revolution Bars is seeking shareholder approval for a £12.5m equity fundraise and the closure of 18 venues.
The company has warned its shareholders that failure to support the fundraising initiative could result in a total loss of their investment.
In May 2024 Revolution Bars urged its shareholders to vote in favour of the fundraising plans to secure the company's future.
Nightcap stated that its proposal would have replaced any such fundraise, and that: “The board of Nightcap believes that the possible offer, if it had been implemented, would have seen Revolution Bars’ highly dilutive £12.5m fundraising replaced by a merger of the two businesses, allowing for Revolution Bars’ shareholders to suffer less dilution and achieve more value from their investment.
“The possible offer would have included a fundraising and the implementation of the restructuring plan, as already planned and outlined in the announcement by Revolution Bars in its announcement on 10 April 2024 to be followed by a combination of the Nightcap and Revolution Bars businesses as well as a sale of the Peach Pubs brand.”
The Sarah Willingham-led business said it will continue to access acquisition opportunities in the hospitality sector.
Nightcap went on: “The board also believes that opportunities for further consolidation in the late night sector will continue to arise in the coming year as the sector moves from incremental M&A [merger and acquisition] activity to a fundamental structural transformation as many of the operators in the sector are going through significant change.”
