The late-night hospitality sector has been dealt a significant blow as The Revel Collective, the parent company of Revolution Bars, has fallen into administration, resulting in the immediate closure of 21 venues and the loss of 591 jobs. This move underscores the severe challenges facing the industry, which has been grappling with escalating operational costs and a notable decline in consumer spending, especially among younger demographics.
Administration and Immediate Closures
FTI Consulting has been appointed as administrators for The Revel Collective, a prominent pub and bar operator. The company cited a combination of rising expenses and weaker customer expenditure as primary factors behind its financial struggles. In response, administrators have taken the drastic step of closing 21 sites with immediate effect, which includes 14 Revolution bars, six Revolucion de Cuba bars, and one Peach Pub location.
Impact on the Hospitality Industry
This development highlights the broader pressures within the late-night hospitality sector, which has been described as facing 'very challenging' times. Revolution Bars had previously reported a swing to an annual loss and a drop in sales, reflecting the difficult economic environment. The closures are expected to have a ripple effect on local economies and the wider bar and pub industry across the UK.
Deals Secured to Save Remaining Sites
Despite the closures, there is a silver lining as administrators have confirmed two key deals that will secure the future of 41 other venues and protect 1,582 jobs. Neos Hospitality Group, known for operating Barbara's Bier Haus and Bonnie Rogues, has acquired the Revolution and Revolucion de Cuba brands and assets. This acquisition aims to revitalise these popular bar chains under new management.
Future of Peach Pubs
Additionally, the remaining Peach Pubs business has been purchased by the newly-formed Coral Pub Company. This transaction ensures that a portion of The Revel Collective's portfolio will continue to operate, providing some stability in an otherwise turbulent market. These sales represent a strategic effort to preserve jobs and maintain a presence in the competitive hospitality landscape.
The administration of The Revel Collective serves as a stark reminder of the vulnerabilities within the hospitality sector, particularly for businesses reliant on discretionary spending. As the industry navigates these headwinds, the focus will be on how new owners can steer the acquired brands towards recovery and growth in the coming months.
