LONDON: The Revel Collective plc, the operator behind Revolution Bars, Revolución de Cuba, and Peach Pubs, has launched a strategic review and formal sales process as it grapples with mounting financial pressures and a sharp decline in revenue.
The company announced Thursday that it is exploring a range of options, including a potential sale of the entire business or divestment of individual trading brands, in a bid to maximize value for stakeholders. The move comes after a series of economic headwinds and government policy changes that have significantly impacted the group’s trading performance.
Since the sanctioning of a restructuring plan for its Revolution Bars Limited unit in August 2024, the company has struggled to recover amid persistent economic challenges. The Autumn 2024 Budget’s changes to employer National Insurance contributions, minimum wage increases, and higher duties on spirits are expected to cost the group over £4 million annually.
Despite initial optimism for fiscal year 2026, the group reported a 7.4% year-over-year decline in like-for-like revenue for the first quarter, with bar sales down 10.5%. Warm summer weather and fragile consumer sentiment, particularly among younger patrons affected by the cost-of-living crisis, further dampened performance. Net debt rose to £25.3 million as of Sept. 30, up from £22.1 million at the end of June.
The company has appointed Cavendish as its Rule 3 adviser under the UK Takeover Code and FTI Consulting as financial adviser to oversee the process. Interested parties will be required to sign non-disclosure and standstill agreements before receiving detailed information and submitting indicative proposals.
While the company anticipates strong trading during the upcoming festive season, it warned that additional funding may be necessary in early 2026 to remain within banking covenants during the typically slow January and February period.
The Takeover Panel has granted a dispensation from certain disclosure rules under the Takeover Code, allowing discussions with potential buyers to remain confidential for the duration of the formal sales process.
The company emphasized that no discussions are currently underway with any potential offerors and that there is no certainty a transaction will occur.
The Revel Collective said it expects to conclude the process in the new calendar year.