Troubled Revolution Bars last night announced an emergency multimillion-pound fundraising backed by Luke Johnson, the serial investor.

In an announcement made after markets closed yesterday evening, the hospitality firm said that it proposed to raise up to £10.5million for a placing and up to £2million via the placing and open offer.

Pledged include £3million from Johnson, the former PizzaExpress and Channel 4 chairman, as well as £3million from the Robus Recovery Fund II, of Germany, and £3.5 million from three key existing shareholders.

This month trading in the shares of Revolution Bars was suspended after the company failed to meet a requirement under the rules of Aim, the junior stock market, to publish its interim results by a deadline of April 6.

Trading in the stock, which closed at 1¼p on March 28, valuing the business at £5.7million, is expected to resume today, according to The Times.

Alongside the fundraiser, Revolution Bars, which has 58 premium bars and 22 gastro pubs, published its interim results showing a pre-tax profit of £3.1million in the six months to December 23, compared with a loss of £91,000 in the same period a year ago. Revenue rose to £82.3million from £76million.

Despite the financial package, the company, which has a Revolution Bar on Belmont Street in Aberdeen, plus a Revolucion de Cuba in The Academy, could still close a quarter of its venues.

Commenting on the Fundraising, Rob Pitcher, CEO of Revolution Bars Group plc, said: "Following a period of macro-economic and external challenges which has impacted both the Company and disproportionately its Revolution brand's young customer base and consequently our trading, the Board has had to consider all strategic options for the Group to improve its future prospects and provide the best outcome for all stakeholders.

"After much consideration, the Board concluded that a plan to restructure the business, together with a fundraising of up to £12.5million and to simultaneously launch a formal sale process would deliver the best value.

"We are driven by the imperative to deliver to stakeholders a business which is fit for purpose in today's environment, better balanced and financed in a way to provide a sustainable long-term future for the Group which, in time, has the opportunity to grow and flourish again."

FTSE 100

The UK's flagship share index, the FTSE 100, was down two-points at 7,959 shortly after opening this morning.

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