Revolution owner re-explores sale
The Revel Collective, which operates the Revolution and Revolución de Cuba brands, is exploring options for the business’ survival, including a formal sales process.
The board said the decision had been made “following a continued period of external challenges which have impacted the company’s business and trading performance”.
It is also considering other transaction structures, such as the sale of its brands on a piecemeal basis.
The group blamed the ‘persistence of challenging economic conditions’ and the government’s most recent Budget for its inability to improve performance.
In January, The Revel Collective predicted the Budget would cause an annual profit impact of £4 million (US$4.94m).
The group said that the action taken to reduce costs and increase margins was not enough to counterbalance the measures introduced in the Budget, specifically changes to employers’ National Insurance Contributions, minimum wage and spirits duty.
In July, the group said there were signs of improvement; however, revenue since has been lower than anticipated. It said “consumer sentiment has remained fragile, which has been particularly evident within the group’s younger customer base, who continue to be some of the hardest hit by the cost-of-living crisis.”
It added that warm weather adversely affected its high-street bar business over the summer.
Although Peach Pubs performed satisfactorily, overall group revenue for the first quarter (Q1) of the 2026 financial year was £26.3 million (US$35m), down by 7.4% compared with Q1 2025.
This fall was primarily driven by a 10.5% reduction in its bar business.
Net debt on 30 September was £25.3m (US$33.7m), up from June’s £22.1m figure.
The group expects significant sales and profit from the festive trading period, which is likely to be followed by quieter months in January and February. Its forecasts indicate the group will require additional funding in the new year.
Any discussions with third parties regarding a sale will be confidential.
It is expected that any transaction will be concluded in the new year.
Back to the negotiating table
The move marks the second time that The Revel Collective has considered a formal sales process.
In April 2024, the firm – which was previously called Revolution Bars Group – announced a plan to restructure its business through an emergency fundraising and the closing of 18 sites.
It also launched a formal sale process as an alternative to the restructuring plan.
The group instead proceeded with the restructuring plan and rejected a proposal from investment group Nightcap.
The firm rebranded in October 2024.
The Revel Collective saw sales fall by 22% in the 26 weeks ending 28 December 2024. In its results statement, the firm said it was planning a brand relaunch for Revolution in spring 2025 and saw an opportunity to expand its food-hall brand, Founders & Co.
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