The hospitality sector has been dealt a significant blow as the owner of Revolution bars has entered administration, resulting in the immediate loss of nearly 600 jobs across the UK. The announcement came just hours before the Chancellor was scheduled to confirm a partial reversal of controversial business rates changes that had been heavily criticised by the pub industry.
Administration Confirmed for Revel Collective
The Revel Collective, which operates multiple bar brands including Revolution, Revolucion de Cuba, and Peach Pubs, formally appointed administrators from FTI Consulting on Tuesday. This followed Monday's notice of intention to appoint administrators, signalling the company's dire financial situation.
In a devastating development for employees, 21 venues have been closed with immediate effect, resulting in 591 redundancies. The closures affect 14 Revolution bars, six Revolucion de Cuba locations, and one Peach Pub establishment.
Geographic Impact of Closures
The closures span multiple regions across the United Kingdom, affecting communities from Scotland to the South West. The Revolution bars closing include locations in:
- Manchester (Oxford Road)
- Huddersfield
- Leicester
- Glasgow (Renfield Street)
- Cardiff
- Nottingham
- Leeds
- Sheffield
- Ipswich
- Manchester (Parsonage Gardens)
- Plymouth
- Durham
- Exeter
- Preston
The Revolucion de Cuba sites affected are in Cardiff, Derby, Liverpool, Reading, Harrogate, and Aberdeen, while the Peach premises closing is The Almanack at Kenilworth in Warwickshire.
Partial Rescue Deal Secures Some Jobs
Despite the significant job losses, administrators confirmed that two separate deals have been agreed that will preserve 41 sites and protect 1,582 positions within the remaining parts of the business. This partial rescue provides some stability for the majority of the company's workforce, though the future remains uncertain for those affected by the immediate closures.
Timing Coincides with Government Policy Shift
The administration announcement arrived shortly before the Chancellor was expected to reveal a partial U-turn on business rates changes that had been particularly burdensome for the pub sector. Industry representatives had warned that the proposed changes would add approximately £13,000 in costs over three years to the average pub before the government's climbdown.
Underlying Financial Pressures
The hospitality group had been battling mounting financial pressures for several years, with rising operational costs creating significant challenges. The company faced particular strain from increased minimum wage requirements and heightened national insurance contributions that came into effect last spring.
Revel Collective had attempted a major restructuring in 2024, closing 15 unprofitable bars in an effort to improve performance. However, this revamp failed to deliver the necessary turnaround, leading to a strategic review that ultimately resulted in the company being placed up for sale.
Trading Challenges and Market Conditions
The company cited multiple factors contributing to its financial difficulties, including weak trading performance. Younger customers, who form a significant portion of Revolution bars' clientele, have been particularly affected by reduced disposable income amid ongoing economic pressures.
Higher operational costs continued to weigh heavily on the company's bottom line, exacerbating an already growing debt burden. The combination of these factors created an unsustainable financial position that ultimately led to the administration process.
The situation highlights the broader challenges facing the UK's hospitality sector, which continues to navigate post-pandemic recovery, changing consumer habits, and significant cost pressures across multiple fronts.
