The Revel Collective, the hospitality group behind popular bar chains including Revolution, Revolucion de Cuba and Peach Pubs, has taken the significant step of filing a notice to appoint administrators. This move comes as the company continues what it describes as "well advanced" negotiations regarding a potential sale of all or parts of the business.
Protecting Creditors Amid Financial Challenges
The Tameside-based company confirmed that submitting the notice was necessary "to protect creditors" given the current financial circumstances. The board has resolved that, unless circumstances change, administrators will be formally appointed within ten business days, in accordance with statutory requirements.
The business emphasised that it will continue to trade normally throughout this process, working alongside advisers to preserve as much value as possible for all stakeholders. This development follows the company's decision to put itself on the market in October as financial difficulties intensified and trading conditions deteriorated.
Shareholder Impact and Ongoing Negotiations
In a sobering update, the company cautioned that shareholders face complete losses under any proposed deal currently being contemplated. The board stated clearly: "Since the transactions being contemplated are not expected to deliver any return to shareholders, the board has resolved to take action to protect creditors."
Despite this challenging position, the company remains engaged in what it describes as "well advanced" sale discussions and anticipates making a further announcement "in the coming days" regarding the outcome of these negotiations.
Recent Struggles and Restructuring Efforts
The Revel Collective's current difficulties follow extensive restructuring efforts undertaken in 2024, which saw the closure of 15 loss-making outlets in an attempt to restore the company's fortunes. However, this transformation strategy ultimately stumbled, leading to a strategic review last autumn that examined financing options and potential disposal of the business.
The company operates from approximately 62 locations across the country and employed slightly more than 3,000 staff as of late June 2024. Recent financial performance has been challenging, with executives revealing in October that turnover had fallen short of projections.
Financial Performance and Market Challenges
Several factors have contributed to the company's difficulties, including younger consumers curtailing their expenditure and unseasonably mild summer conditions affecting trading. The financial figures reveal the scale of the challenge:
- Turnover declined by 7.4% to £26.3 million during the quarter ending in September
- A 10.5% like-for-like drop across its bar operations propelled this decline
- The company's debt burden expanded further, climbing to £25.3 million from £22.1 million at the end of June
The Revel Collective, led by former Pizza Express chief Luke Johnson, now faces a critical period as it navigates administration proceedings while attempting to secure a sale that could preserve elements of the business for the future.
