In a significant blow to Britain's hospitality sector, the owner of the popular Revolution Bars chain has taken the drastic step of appointing administrators, signalling deepening troubles for venues across the country.
Administration Looms for Major Hospitality Group
Revel Collective, which operates more than sixty venues including the well-known Revolution Bars group and the Peach pub chain, has announced it expects to appoint administrators within the next ten days. This move comes unless the company can secure an eleventh-hour rescue sale to avert collapse.
Following this announcement, shares in the AIM-listed firm were immediately suspended from trading. The company had initiated a formal sale process back in October 2025 in an attempt to find a solution to its mounting financial pressures.
In a statement issued to shareholders, Revel Collective confirmed: "The business will continue to trade and the company will continue to work alongside advisers in order to preserve as much value as possible for all stakeholders as it advances a potential sale of all or parts of the business."
Hospitality Sector Under Immense Pressure
The potential administration of Revel Collective represents the latest and one of the most prominent casualties in an ongoing crisis gripping the UK's hospitality industry. A growing number of venues are being forced to close their doors permanently, buckling under the combined weight of increased taxation and spiralling operational expenses.
Recent data from consumer intelligence firm NIQ paints a stark picture of the sector's decline. Their research indicates there were 382 fewer licensed premises operating at the end of December 2025 compared to just three months earlier. This equates to an alarming rate of approximately four closures every single day.
Casual Dining and Pubs Hit Hardest
The downturn has not affected all venues equally. Casual dining restaurants and eateries have been particularly devastated, recording 241 closures during that same three-month period. Pubs of all varieties have also seen a significant reduction in their numbers across the nation.
NIQ analysts point to several key factors driving this trend. Restaurants are grappling with persistent food inflation and substantially higher labour costs, exacerbated by recent increases to the national minimum wage and employers' National Insurance contributions. Furthermore, suppressed consumer confidence continues to act as a major headwind, discouraging spending in bars and restaurants.
Specific Cost Pressures Crippling Business
Revel Collective has been explicit about the specific financial burdens that have hammered its operations. The company highlighted increased National Insurance costs, higher minimum wages, and elevated duty on spirits as among the primary pressures. Management estimates these three government-led measures alone are adding up to a staggering £4 million in additional costs per year.
In an October trading update, the company lamented: "The persistence of challenging economic conditions and the cumulative impact of government interventions in the last budget have combined to thwart the business’ ability to improve performance."
The financial results underscore the struggle. For the year ending June 2025, Revel's revenue stood at £117.1 million, representing a like-for-like decline of 7.9 per cent compared to the previous year. The company attributed this drop to "ongoing fragile consumer sentiment and market challenges."
Rob Pitcher, Chief Executive of Revel Collective, commented on the difficult trading environment: "Guests in our bars continue to face cost challenges and the late-night sector remains challenging for many participants."
Failed Diversification and Sale Attempts
Revel's current predicament follows strategic moves that ultimately failed to secure its future. In 2022, the company acquired the Peach Pubs chain for £16.5 million in a bid to diversify its operations beyond its core late-night bar model.
The path to administration has been winding. The group initially launched a sale process in May 2024 and subsequently received a merger approach from Nightcap, a rival listed bar owner. However, those hopes were dashed when Nightcap later expressed public "disappointment" after its proposal was formally rejected by Revel's board.
With administrators now poised to take control, the future of dozens of Revolution Bars and Peach Pubs hangs in the balance, emblematic of the severe pressures facing the wider UK hospitality landscape.
