Revolution Bars has announced it is set to close eight sites across the UK, after recording a like-for-like sales drop of -2.8% in the first half of its financial year.

Following the announcement, shares in the firm dropped by over 19%, according to the London Stock Exchange.

The group, which operates 58 bars and 22 pubs and trades under the Revolution, Revolución de Cuba and Peach Pubs brands, said it recorded its best festive period since 2019, with like-for-likes in the four weeks to 31 December increasing by 9% year-on-year.

However, Revolution Bars said that its "guests continue to be disproportionately impacted by the current macroeconomic conditions" and that the statutory 10.8% increase in the national living wage in April will also cause further financial challenges.

The company announced that locations in Beaconsfield, Derby, Reading, St Peters Liverpool and Wilmslow will close, along with Revolución de Cubas in Sheffield and Southampton and the Playhouse in Newcastle-Under-Lyme, as a result of being the group’s eight least profitable locations.

Revolution Bars confirmed it is working to redeploy team members affected by these closures and they will be offered alternative employment within the firm.

The firm’s current net debt is at £18.3m, which is below what was reported in July 2023.

Chief executive officer at Revolution Bars, Rob Pitcher, said: "We have had the best festive trading period for four years with all of our brands recording positive like for like sales and Revolución de Cuba being the standout performer.

"However, our younger customers are still feeling the disproportionate effect of the cost-of-living crisis and the national living wage will increase materially in April 2024. Therefore, we have taken the difficult yet ultimately beneficial step for the group to close several bars which are unprofitable.

"Our teams do a terrific job in making guests welcome and giving them a great experience and again we have demonstrated that when our customer base can afford to do so, they are choosing to celebrate with us, and we have delivered record levels of guest satisfaction. This should bode well for the future."

Revolution Bars expects to announces its H1 pre-close trading update on 24 January.

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