Around 590 roles have been cut after the group, which trades under the Revolution Bars and Revolución de Cuba brands, fell into administration, with the remainder of the business sold off in a break-up deal.
Administrators FTI Consulting said the closures were unavoidable given sustained pressure on trading. They cited higher employers’ national insurance contributions, increases to the national minimum wage and rising duties on spirits as having a “detrimental” impact on the group’s financial performance.
The collapse and partial rescue of Revel Collective came just as the chancellor unveiled a long-awaited support package for pubs, following warnings of widespread closures and job losses driven by rising business rates.
Under the revised measures, pubs and music venues in England will receive a 15 per cent discount on their business rates bills from April and will be protected from further increases for two years. However, other parts of the hospitality sector, including restaurants and hotels, have been excluded from the relief, prompting frustration among industry leaders.
Kate Nicholls, chair of UKHospitality, said the support did not go far enough.
“The reality remains that restaurants and hotels are still facing severe challenges from successive budgets,” she said, warning that many businesses would be forced into “increasingly tough decisions on viability, jobs and prices”.
Revel Collective had repeatedly warned about the impact of higher employment costs following Rachel Reeves’s first Budget in 2024. The group said increases to employers’ national insurance and the national minimum wage would add more than £4 million a year to its cost base, undermining efforts to stabilise performance despite cost-cutting and margin improvement measures.
As part of the administration process, FTI Consulting confirmed two transactions that will preserve the future of 41 sites and safeguard 1,582 jobs.
Late-night operator Neos Hospitality Group, chaired by industry veteran Peter Marks, has acquired 20 venues from the estate, saving around 800 jobs. Meanwhile, the group’s Peach Pubs business has been sold to Coral Pub Company, a newly formed vehicle led by pub entrepreneur Ted Kennedy.
While the deals have secured a significant proportion of the business and workforce, the loss of nearly 600 roles underlines the ongoing strain facing the UK hospitality sector, particularly as cost pressures continue to bite unevenly across pubs, bars, restaurants and hotels.
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Revolution bar group rescued but nearly 600 jobs lost as 21 sites close
