Nearly 600 jobs to go as Revolution Bars rescue deal shuts over 20 sites
Nearly 600 jobs are set to be wiped out after a last-minute rescue deal to acquire the group behind Revolution Bars will see more than 20 sites closed with immediate effect.
Administrators for Revel Collective, the AIM-listed hospitality group which also owns the Peach pubs chain, said two separate deals had been reached to sell off its separate bar and pub portfolios.
The Revolution Bars and Revolution de Cuba bars have been snapped up by Circuit night club operator Neos Hospitality, while the Peach pubs chain has been taken over by seasoned hospitality entrepreneur Ted Kennedy.
More than 1500 jobs and 41 venues will be saved through the two rescue deals, administrators FTI said, but 21 sites and 591 jobs were set to go.
As many as 14 Revolution bars, six Revolution de Cuba bars and one Peach pub would be shuttering with immediate effect.
“The businesses have faced a sustained period of challenging economic conditions including subdued consumer confidence, particularly amongst the younger guest, and the cumulative impact of changes to employer NICs thresholds, minimum wage increases and duty on spirits, all of which have had a detrimental impact on trading,” FTI said.
Shares in Revel were suspended on Monday after the hospitality group was forced to warn it intended to appoint administrators after difficulties negotiating a sale of the business.
Revel’s revenue stood at £117.1m for the year to end June 2025, a life-for-like fall of 7.9 per cent compared to the previous year on the back of what it described as the “ongoing fragile consumer sentiment and market challenges.”
“Guests in our bars continue to face cost challenges and the late-night sector remains challenging for many participants,” said chief executive Rob Pitcher.
Revel, which acquired Peach Pubs in 2022 for £16.5m in a bid to diversify its operations, previously launched a sale process in May 2024 and received an approach from listed bar owner rival Nightcap.
But Nightcap later expressed “disappointment” after its merger proposal was rejected.
Hospitality in crisis
The mass closures may be seen as a symbolic blow to Rachel Reeves’ sweeping business rates reforms announced at the Budget.
Tax minister Dan Tomlinson is expected to unveil another government U-turn, with up to £300m to be offered to pubs in temporary support after fierce backlash from industry officials.
Other hospitality businesses, including bars and restaurants, could miss out on a support package.
Tensions around the new tax scheme for business properties reached a climax as leftwing Labour member Rachel Maskell asked the Prime Minister if he would take urgent action to help pubs facing having to pay thousands of pounds more in tax bills.
Hundreds of publicans also banned Labour MPs as part of the ‘Wonky Table’ campaign.
According to consumer intelligence firm NIQ, there were 382 fewer licensed premises at the end of December than there were three months prior, equivalent to four closures per day.
Casual dining sites and restaurants were particularly hard hit, recording 241 closures over the period, while pubs of all varieties saw a fall in the number of sites.
NIQ noted that restaurants have been particularly hard hit by food inflation and higher labour costs, as a result of recent increases to the minimum wage and employers’ national insurance. The firm also pointed to suppressed consumer confidence as a key headwind for hospitality businesses.