Rescue Deal for Revolution Bars Owner Saves Dozens of Venues, But 21 Sites to Close
Administrators have announced a last-ditch rescue deal for the group behind Revolution Bars, which will preserve over 1,500 jobs and 41 venues, but result in the immediate closure of 21 sites and the loss of 591 positions.
Details of the Twin Rescue Transactions
Two separate deals have been reached to sell off the bar and pub portfolios of Revel Collective, the AIM-listed hospitality firm that also operates the Peach pubs chain. The Revolution Bars and Revolution de Cuba brands have been acquired by Cardiff-based Circuit nightclub operator Neos Hospitality, whilst the Peach pubs portfolio has been taken on by veteran hospitality entrepreneur Ted Kennedy.
However, the rescue comes at a significant cost. As many as 14 Revolution bars, six Revolution de Cuba bars, and one Peach pub will close with immediate effect. This includes locations across the UK, such as Cardiff, Durham, Exeter, Glasgow, Huddersfield, Ipswich, Leeds, Leicester, Manchester, Nottingham, Plymouth, Preston, Sheffield, Aberdeen, Derby, Harrogate, Liverpool, Reading, and Kenilworth.
Challenging Economic Conditions Cited
FTI, the administrators, stated that the businesses have faced a sustained period of challenging economic conditions. These include subdued consumer confidence, particularly among younger guests, and the cumulative impact of changes to employer NICs thresholds, minimum wage increases, and duty on spirits, all of which have had a detrimental effect on trading.
Revel's revenue for the year ending June 2025 was £117.1 million, a like-for-like decrease of 7.9 per cent compared to the previous year. Chief executive Rob Pitcher attributed this decline to ongoing fragile consumer sentiment and market challenges, noting that guests in their bars continue to face cost pressures and the late-night sector remains difficult for many participants.
Background and Broader Industry Context
Trading in Revel shares was suspended on Monday after the hospitality group was compelled to announce its intention to appoint administrators following unsuccessful negotiations to sell the business. In an effort to diversify its operations, Greater Manchester-based Revel acquired Peach Pubs in 2022 for £16.5 million. It initiated a sale process in May 2024 and received an overture from listed bar owner rival Nightcap, but Nightcap later expressed disappointment after its merger proposal was turned down.
The widespread closures could be perceived as a symbolic setback to recent business rates reforms. Tax minister Dan Tomlinson is anticipated to reveal another government reversal, with up to £300 million to be offered to pubs in temporary support following intense backlash from industry officials. However, other hospitality businesses, including bars and restaurants, might not receive a similar support package.
Tensions surrounding the new tax scheme peaked when leftwing Labour member Rachel Maskell questioned the Prime Minister about taking urgent action to assist pubs facing increased tax bills. Hundreds of publicans also barred Labour MPs as part of the 'Wonky Table' campaign.
Industry-Wide Hospitality Challenges
According to consumer intelligence firm NIQ, by the end of December there were 382 fewer licensed premises than three months earlier, equating to four closures daily. Casual dining establishments and restaurants were particularly severely affected, with 241 closures recorded during this period, whilst pubs across all categories experienced a decline in site numbers.
NIQ highlighted that restaurants have been especially impacted by food inflation and elevated labour costs, resulting from recent rises to the minimum wage and employers' national insurance. The firm also identified weakened consumer confidence as a significant challenge facing hospitality businesses, echoing the issues faced by Revel Collective.
