Revolution Bars has begun talks with Nightcap in regards to a potential takeover offer.

The hospitality firm, which operates brands including Revolution, Revolucion de Cuba and Peach Pubs, said that it held an "exploratory meeting" with Nightcap "regarding a range of possible transactions", which includes an acquisition of the group.

Nightcap owns 46 venues in the UK across 11 brands, including Dirty Martini, Tonight Josephine and The Cocktail Club.

Revolution Bars saw its shares suspended last month after it failed to announce its results for the second half of its financial year.

The group had previously announced that it was set to close eight sites across the UK, while Sky News reported that it was drawing up plans to close around 20 of its bars.

It has struggled financially in the past year, stating that macroeconomic conditions and the statutory 10.8% increase in the national living wage was causing problems for the firm.

Head of equity funds at Hargreaves Lansdown, Steve Clayton, said: "Looks like it could be time for Revolution Bars to take a nightcap. Revolution have been struggling for many years, even before the pandemic struck. Having racked up operating losses every year bar one since 2018, the group had put itself into a formal sale process a few weeks ago, accompanied by an emergency fund-raising to keep the group afloat through the process."

In line with acquisition rules, Nightcap is required to either announce a firm intention to make an offer for Revolution Bars or announce that it does not, by no later than 5pm on 30 May 2024.

However, the deadline can be extended with the consent of the takeover panel.

---