The parent company of the popular Revolution Bars chain has filed for administration, placing approximately 2,200 jobs in jeopardy across the United Kingdom. Revel Collective, which operates 62 bars including the Revolution brand, Revolucion de Cuba, and Peach, confirmed the move following what it described as a prolonged period of severe external pressures.
Economic Pressures and Policy Criticism
In a stark assessment of the current business climate, the company pointed to what it termed 'challenging economic conditions' as a primary driver behind its financial collapse. Specifically, management criticised elements of Chancellor Rachel Reeves' inaugural Labour budget from 2024, which was announced last autumn. The company highlighted increased National Insurance contributions for employers and a rise in the National Living Wage as significant burdens.
Furthermore, a hike in duties on spirits was singled out, with the firm estimating this policy change alone would cost an additional £4 million annually. These fiscal pressures converged with the end of pandemic-era relief measures for the hospitality sector and a forthcoming revaluation of business rates, creating what industry analysts call a perfect storm for pub and bar operators.
The Path to Administration
Revel Collective had initially attempted to avert this outcome by placing itself up for sale in October of last year. Despite engaging in what it called 'well advanced' discussions with potential buyers, including bar and club operator Neos Hospitality, the company was forced to file for administration. This legal process effectively wipes out existing shareholders, who will receive nothing from any eventual sale of the business.
The company stated that entering administration was necessary to protect creditors, such as banks, while it finalises a sale. Administrators are expected to be formally appointed within the next ten days. Notably, trading of Revel Collective's shares on London's junior AIM stock exchange has been suspended, though all 62 bars will continue to operate normally during the administration process.
Broader Hospitality Sector Crisis
The plight of Revolution Bars reflects a wider crisis engulfing the UK's hospitality industry. According to data from consumer research firm NIQ, sector closures soared at the end of 2025, with 382 companies shutting down in the final quarter alone—a rate exceeding four per day. This attrition has left just 98,914 hospitality sites operating across the country by year's end.
Karl Chessell, Director of Hospitality Operators and Food at NIQ, attributed the wave of failures to 'relentless increases in operating costs', which are punishing businesses across the board. In response to industry warnings that mass closures were imminent, the government is now reportedly considering watering down planned changes to the business rates system specifically for pubs.
Failed Turnaround and Future Prospects
Prior to this administration filing, Revel Collective had attempted a corporate turnaround by closing 15 loss-making bars. However, this drastic measure proved insufficient to revive the company's fortunes. Former Pizza Express boss Luke Johnson confirmed the timeline for appointing administrators, while the company itself noted it had attracted 'a significant number' of interested buyers in December.
An announcement regarding a potential sale is anticipated in the coming days. The situation underscores the fragile state of the UK's night-time economy and the intense pressure facing businesses from a combination of rising wages, increased taxation, and shifting consumer habits in a post-pandemic landscape.
