Shares in Revolution Bars jumped more than 14 per cent this morning as the bar chain announced an extension to its borrowing limits during the coronavirus pandemic.
The company, which has furloughed 98 per cent of its workforce, also announced that its chief executive, finance chief and non-executive directors will take a 50 per cent pay cut.
Revolution this morning said it has extended its revolving credit facility by around £10m.
The company’s current facility is £21m and runs to December 2021, but was set to step down to £18m at the end of June. Natwest has agreed to increase the amount to £30m until the end of August, when it will reduce to £24m.
The company said: “Given the prevailing level of uncertainty regarding both the timing of being able to reopen the Group’s bars and the trading environment in the post Covid-19 period, Natwest has indicated it will review both the amount of available facility and the covenant tests applicable from the end of September 2020 by reference to the group’s updated trading forecasts closer to that date.”
Revolution has reduced its weekly running costs to around £400,000 following a range of measures including the government’s support package and cancelling capital expenditure.
The bar operator said it is in negotiations with landlords over rent relief and has secured deals with suppliers over contract suspensions and extended credit and payment terms.
Revolution has also renegotiated the terms of a lease surrender deal with its landlord Aprirose, which was announced in January. The completion payments have been reduced from £3.64m to £2.25m and deferred payments have been agreed.