The Revel Collective, the hospitality group behind popular chains including Revolution Bars and Revolucion de Cuba, has announced its intention to appoint administrators. This move comes as the company seeks to shield its creditors during ongoing and what it describes as "well advanced" discussions regarding a potential sale of the business.
Protecting Creditors Amid Financial Strain
The group confirmed on Monday that it had formally filed a notice to appoint administrators, a decision driven by the need to protect creditors. In a statement, the board explained that since any forthcoming transactions are not anticipated to yield returns for shareholders, this action was deemed necessary to safeguard other stakeholders.
The company emphasised that unless circumstances change, administrators will be appointed within the next ten business days. Despite this step, The Revel Collective has assured that all venues will continue to operate normally while sale talks progress.
Advanced Negotiations for Business Sale
Sale discussions are reportedly at an advanced stage, with the group expecting to provide a further update in the coming days. The potential sale could involve the entire business or specific parts of it, as the company works alongside advisers to preserve value for all involved parties.
Chaired by former Pizza Express executive Luke Johnson, The Revel Collective initially put itself up for sale in October last year as financial pressures mounted. By December, the firm had warned shareholders that they faced likely losses in any eventual deal.
Restructuring Efforts and Ongoing Challenges
The group undertook significant restructuring in 2024, closing 15 unprofitable bars in an attempt to improve performance. However, these revival plans encountered difficulties, prompting a strategic review last autumn that explored both funding options and a potential sale.
As of June 2024, The Revel Collective operated approximately 62 venues across its portfolio, which also includes the Peach Pubs brand, employing just over 3,000 staff members.
Financial Performance and Market Pressures
Company executives highlighted several factors contributing to their financial challenges, including weaker-than-expected revenue as younger customers reduced discretionary spending. Unseasonably warm summer weather further impacted trading performance.
Financial figures revealed a 7.4% decline in revenues to £26.3 million for the three months ending September, driven primarily by a 10.5% like-for-like decrease in bar sales. Additionally, the company's debt burden increased from £22.1 million to £25.3 million during this period.
The hospitality group continues to navigate these difficult market conditions while pursuing a sale that could determine its future operational structure.
