The owner of the Revolution Bars chain has closed 21 venues with immediate effect, resulting in the loss of 591 jobs, after appointing administrators. The Revel Collective, which operates the late-night hospitality brands, has struggled against a backdrop of rising costs and weaker consumer spending, particularly among its younger customer base.
Immediate Closure of Multiple Brands
The venues shutting their doors incorporate 14 Revolution bars, six Revolucion de Cuba bars, and one Peach Pub site. This decisive action follows the group's appointment of FTI Consulting as administrators, who have been brought in to manage the pub and bar operator's affairs during this turbulent period.
Deals Secured to Save Remaining Operations
However, in a significant development, FTI Consulting confirmed a pair of deals that will secure the future of 41 other sites and protect 1,582 jobs. The Revolution and Revolucion de Cuba brands and their associated assets have been purchased by Neos Hospitality Group, the operator behind Barbara's Bier Haus and Bonnie Rogues.
Simultaneously, the remaining Peach Pubs business has been acquired by the newly-formed Coral Pub Company. These transactions provide a lifeline for a substantial portion of the group's operations, ensuring continuity for many employees and venues.
A Downward Spiral in Trading Conditions
The Revel Collective – chaired by former Pizza Express boss Luke Johnson – had placed itself up for sale in October as its cash crisis deepened and sales continued to slump. The group had previously warned shareholders two months later that they were likely to be wiped out as part of any potential rescue deal.
This latest administration follows a major restructuring effort in 2024, during which the company shut 15 unprofitable bars in a bid to turn around its performance. Unfortunately, these revamp plans faltered, leading to a strategic review last autumn into funding options and a potential sale of all or parts of the business.
Industry-Wide Challenges for Nightlife
Bosses at the firm have repeatedly flagged that sales have been weaker than anticipated, as younger customers have reined in their discretionary spending. Revolution bars are traditionally known for their extensive range of cocktails, flavoured vodka shots, and vibrant late-night party atmosphere.
Yet, significant parts of the UK's nightlife industry have faced immense struggles since the Covid-19 pandemic, with numerous sites forced to close amid changing consumer behaviours and a relentless array of rising business costs. The group specifically cited higher national insurance contributions, increases to the minimum wage, and elevated duty on spirits as having a particularly detrimental impact on its trading performance.
The late-night hospitality sector is navigating very challenging times, with this administration underscoring the severe pressures facing operators who rely on younger demographics and discretionary leisure spending.
