The hospitality sector has been dealt a significant blow as the owner of the popular Revolution Bars chain, The Revel Collective, has entered administration. This move has led to the immediate closure of 21 venues across the UK, resulting in 591 redundancies. Administrators from FTI Consulting have been appointed to oversee the process, confirming a sale that aims to secure the future of the remaining 41 locations and protect 1,582 jobs.
Financial Struggles and Customer Decline
The Revel Collective, chaired by former Pizza Express boss Luke Johnson, has faced mounting financial difficulties in recent years. The company cited rising operational expenses and a notable decline in customer spending, particularly among its younger demographic, as key factors behind its struggles. A strategic review was launched last autumn to explore financing options and potential sales, but the situation deteriorated, leading to the administration.
Impact of Economic Pressures
Company executives highlighted that turnover consistently fell short of projections, exacerbated by younger customers cutting back on discretionary spending. The group had previously attempted a restructuring in 2024, closing 15 loss-making bars in a bid to improve its fortunes. However, this transformation strategy failed to yield the desired results, with the business warning shareholders in December that they might face complete losses in any transaction.
Sale and Future of Remaining Venues
In a bid to salvage parts of the business, administrators have facilitated a sale. The Revolution and Revolucion de Cuba brands and assets have been acquired by Neos Hospitality Group, which operates other brands such as Barbara's Bier Haus and Bonnie Rogues. Meanwhile, the Peach Pubs operation has been purchased by the newly-established Coral Pub Company. This deal ensures that 41 venues and over 1,500 jobs will continue, providing a lifeline for the remaining parts of the group.
Broader Challenges in the Nightlife Sector
The closure of these venues reflects wider challenges within Britain's nightlife industry, which has been grappling with the aftermath of the Covid-19 pandemic. Many establishments have shuttered due to shifting consumer habits and escalating costs, including increased national insurance payments, minimum wage rises, and spirit duties. Revolution Bars, known for their extensive cocktail selections and vibrant late-night environments, have particularly felt the pinch as younger patrons reduce their spending.
Full List of Venues Closing Immediately
The following venues are closing with immediate effect as a result of the administration:
Revolution Bars
- Cardiff – South Glamorgan, Wales
- Durham – County Durham
- Exeter – Devon
- Glasgow, Renfield St – Scotland
- Huddersfield – West Yorkshire
- Ipswich – Suffolk
- Leeds Electric Press – West Yorkshire
- Leicester – Leicestershire
- Manchester, Oxford Road – Greater Manchester
- Manchester, Parsonage Gardens – Greater Manchester
- Nottingham Cornerhouse – Nottinghamshire
- Plymouth – Devon
- Preston – Lancashire
- Sheffield – South Yorkshire
Revolucion de Cuba Bars
- Aberdeen – Aberdeenshire, Scotland
- Cardiff – South Glamorgan, Wales
- Derby – Derbyshire
- Harrogate – North Yorkshire
- Liverpool – Merseyside
- Reading – Berkshire
Peach Pubs
- The Almanack, Kenilworth – Warwickshire
This development underscores the ongoing pressures facing the UK's hospitality and nightlife sectors, with businesses struggling to adapt to economic headwinds and changing consumer behaviours. The sale of the remaining assets offers a glimmer of hope for the future, but the loss of 21 venues and hundreds of jobs marks a sombre moment for the industry.
