Revolution Bars has shot down a possible takeover from Nightcap, claiming the move is "incapable of being delivered".
The troubled bar group, which also runs Revolucion de Cube and Peach Pubs brands, launched a sale process and significant restructuring plans last month amid efforts to stay afloat.
Proposals included fundraising of £12.5m as well as the closure of 18 venues.
This morning's update confirmed that the fundraising had been secured, although requires shareholder backing at a vote in its next general meeting.
Nightcap's proposals would mean Revolution would have to continue with the restructuring plan, but not the existing fundraising.
Reporting this morning, Revolution Bars Group confirmed that Nightcap's proposal would require "two separate equity fundraisings to successfully complete compared with the Fundraising which has already been secured by the Company subject only to the shareholder vote.
It added: "The Board has received legal advice concluding that the Company would be unable to pursue the Restructuring Plan on the basis envisaged in the Nightcap Proposal given the funding for the Restructuring Plan would not be in place at the time of the planned launch."
Revolution also said Nightcap's bid would require additional funding, "over and above the Company's existing forecast funding requirement", for a successful completion of the transaction.
Revolution says it remains open to other bids, including other proposals from Nightcap.