Group operates Revolution bars as well as Revolucion de Cuba and Peach Pubs
Revolution is one of Britain’s best-loved bar brands(Image: ChronicleLive)
Revolution bars operator The Revel Collective has revealed plans to bring in administrators, though it remains engaged in discussions regarding a potential sale.
The group – which also operates establishments under the Revolucion de Cuba and Peach Pubs brands – confirmed it had submitted a notice to appoint administrators “to protect creditors”.
The Tameside-based company continues to pursue talks over a possible sale, describing these negotiations as “well advanced” and stating it anticipates making a further announcement “in the coming days”.
The Revel Collective – led by former Pizza Express chief Luke Johnson – put itself on the market in October as its financial difficulties intensified and trading deteriorated.
It cautioned two months later that shareholders faced complete losses under any proposed deal.
The business said on Monday: “Since the transactions being contemplated are not expected to deliver any return to shareholders, the board has resolved to take action to protect creditors.
“Unless circumstances change, and in accordance with statutory requirements, the board intends to appoint administrators within 10 business days.”
It added: “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 company carried out extensive restructuring in 2024, closing 15 loss-making outlets in an attempt to restore its fortunes. However, the transformation strategy stumbled and the company initiated a strategic review last autumn examining financing options and the potential disposal of all or portions of the enterprise.
The business operates from approximately 62 locations and had a workforce of slightly more than 3,000 staff as of late June 2024.
Company executives revealed in October that turnover had fallen short of projections as younger consumers curtailed their expenditure, compounded by unseasonably mild summer conditions.
Turnover declined by 7.4% to £26.3 million during the quarter ending in September, propelled by a 10.5% like-for-like drop across its bar operations. The firm also revealed that its debt burden had expanded further, climbing to £25.3 million from £22.1 million at the end of June.
