Revel Collective Rescue Efforts Lead to Significant Job Losses

Nearly 600 jobs have been lost following a deal to rescue the beleaguered Revel Collective, a bar group known for its Revolution, Revolución de Cuba, and Peach pub brands. The company entered administration after facing mounting pressures that ultimately led to the closure of 21 bar locations.

FTI Consulting, the appointed administrators, pointed out a combination of factors contributing to the company’s difficulties. Increases to employers’ national insurance contributions and the national minimum wage, along with higher duties on spirits, were cited as having a detrimental impact on trading conditions for the business.

The collapse coincided with the Chancellor’s recently announced support package for the pub industry, which is grappling with increasing business rates and operational costs. The government has chosen to extend a 15 per cent discount on business rates for pubs and music venues in England, effective from April, without a proposed increase for the next two years.

However, this relief does not extend to other sectors within hospitality, such as restaurants and hotels, leading industry leaders to express frustration. Kate Nichols, chairwoman of UKHospitality, highlighted that numerous establishments continue to confront significant challenges stemming from recent budgets, forcing difficult decisions about business viability, job security, and pricing strategies.

The Revel Collective had repeatedly referenced the adverse effects of increasing employment costs since the budget introduced by Rachel Reeves in 2024, which have impeded performance against a challenging trading backdrop. The firm estimated that these increased costs would add over £4 million annually to its financial obligations.

In the wake of administration, FTI confirmed that deals are in place to secure the future of 41 sites and approximately 1,582 jobs. The Neos Hospitality Group, led by seasoned industry veteran Peter Marks, acquired 20 locations from Revel Collective, successfully preserving around 800 positions. Additionally, the remaining Peach pub business has been bought by the Coral Pub Company, newly established under the direction of veteran entrepreneur Ted Kennedy.