Revolution Bars Group Enters Administration Threatening 62 UK Venues
The hospitality sector faces significant disruption as The Revel Collective, the parent company of popular bar chains including Revolution Bars, Revolucion de Cuba and Peach Pubs, has formally filed a notice to appoint administrators. This critical development places 62 venues across the United Kingdom at immediate risk of permanent closure, affecting numerous communities and employment opportunities.
Protecting Creditors Amid Financial Turmoil
In an official statement released today, the company confirmed that this decisive action was taken specifically "to protect creditors" following extensive financial difficulties. The board has resolved that, unless circumstances change dramatically, administrators will be formally appointed within the statutory period of 10 business days. During this interim period, all venues will continue to trade normally while the company explores potential rescue options.
"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," the group elaborated in their comprehensive announcement. Further updates regarding the administration process and any potential buyers are expected in the coming days.
Persistent Economic Challenges and Government Policy Impact
This administration filing follows a prolonged period of financial strain for the group, which had already undertaken significant restructuring efforts. Earlier in October, Revolution Bars was formally put up for sale after reporting consistently falling sales in recent financial periods. As part of previous restructuring approved by the High Court, the company had already closed 36 locations in an attempt to stabilise operations.
Company executives have pointed to multiple contributing factors behind their ongoing struggles, citing particularly "challenging economic conditions" that have persisted across the hospitality sector. Significantly, they highlighted specific Government interventions introduced in the autumn budget as having directly undermined their recovery efforts.
"Action taken to reduce costs and increase margins has not been sufficient to mitigate the negative impact of the autumn budget changes to the employer NICs threshold, minimum wage and duty on spirits," the company statement explained in detail. These policy changes have created additional financial pressures that existing cost-cutting measures could not adequately offset.
Financial Performance and Mounting Debt
The group's most recent financial disclosures reveal the severity of their situation. Over the critical three-month period ending in September, overall revenues dropped by 7.4% to £26.3 million. This decline was primarily driven by a substantial 10.5% like-for-like decrease in their core bars business, indicating fundamental challenges in customer footfall and spending patterns.
Perhaps more concerning is the company's escalating debt burden, which has grown significantly in recent months. Total debts have risen to £25.3 million from £22.1 million at the end of June, creating additional financial pressure that has contributed to the current administration decision. This combination of declining revenue and increasing liabilities has created an unsustainable financial position requiring immediate intervention.
The future of The Revel Collective's extensive venue portfolio now hangs in the balance as administrators prepare to take control of operations. The outcome will have significant implications for the UK's hospitality landscape, potentially reshaping nightlife offerings in numerous towns and cities across the country.
