A well-known nightlife company, recognized for its popular venues like Revolucion de Cuba, has revealed intentions to bring in administrators to safeguard creditors. The Revel Collective, which operates various venues including Revs and Peach Pubs, disclosed that it had initiated the process of appointing administrators to shield its creditors. Despite this move, the group mentioned that discussions regarding a potential sale were progressing positively and an announcement on this matter is expected soon.
The company clarified that the proposed transactions are unlikely to yield any benefits for shareholders, leading the board to take action to protect creditors. Unless circumstances change, administrators are expected to be appointed within the next ten business days. The business operations will continue as usual while the company collaborates with advisors to maximize value for all stakeholders during a potential sale of all or parts of the business.
In the event of administration, over 60 venues could be at risk. The decision comes after the company underwent a strategic review and initiated a new sales process a few months ago. The Revel Collective had been facing challenges due to the cost-of-living crisis and recent changes in minimum wage regulations.
Originally named Revolution Bars Group and rebranded in autumn 2024, the company cited tough economic conditions and the impact of government interventions as factors hindering its performance. Additionally, it pointed out the financial burden of employer NICs threshold, spirits duty, and the increase in minimum wage, amounting to an annual excess of £4 million. Last December, the company engaged with numerous potential acquirers but expected no returns for shareholders from the proposed transactions.
Founded in 1991 in Ashton-under-Lyne, Greater Manchester, the group has expanded nationwide and currently operates a diverse portfolio of bars and gastropubs, predominantly under the brands Revolution, Revolución de Cuba, and Peach Pubs.
