Revolution Bars will close 21 venues across the United Kingdom, resulting in the loss of nearly 600 jobs. This significant reduction follows the company’s owner, The Revel Collective, entering administration, underscoring the pressures facing the hospitality sector and changing social habits among younger drinkers. The closures, confirmed this week, will eliminate 591 roles after the parent company failed to secure necessary funding.
Administrators from FTI Consulting noted that while a considerable portion of the business has been sold, a number of sites did not make it into the rescue plans and ceased operations immediately. This decision reflects the broader challenges currently confronting the UK nightlife industry, marked by rising costs and declining patronage, especially among younger consumers.
The Revel Collective’s administration, announced earlier this week, prompted the immediate shutdown of 14 Revolution Bars, six Revolución de Cuba venues, and one establishment under its Peach Pubs division. According to FTI Consulting, the affected sites were deemed unviable under the new ownership arrangements. Still, agreements were reached to safeguard a substantial portion of the business. The Revolution and Revolución de Cuba brands were sold to Neos Hospitality Group, while Coral Pub Company acquired the Peach Pubs division. These transactions preserve 41 venues and protect approximately 1,582 jobs.
Earlier this month, Revel Collective had warned it would appoint administrators within ten business days unless its financial situation improved. Shareholders were informed that any sale would likely eliminate existing equity. The company had been grappling with decreasing revenues and increasing debts. In the three months ending September 2023, it reported a 7.4 percent decline in revenue, amounting to £26.3 million (around $34.7 million), while total debt rose to £25.3 million (approximately $33.4 million).
Despite a major restructuring in 2024 that closed 15 unprofitable sites, these measures failed to stabilize the company’s financial health. The Revel Collective initiated a strategic review last autumn and formally sought buyers in October. Senior executives indicated at that time that trading had not met expectations, particularly as younger customers reduced their spending on nights out. This trend has been echoed across the hospitality industry, where businesses report lower foot traffic and diminished late-night revenues.
The closures of Revolution Bars highlight the evolving landscape of socialising among younger generations, who increasingly prefer to spend their leisure time at home or engage in alternative activities rather than frequent late-night drinking venues. Industry bodies have pointed to the pandemic as a significant factor accelerating these changes.
The loss of 591 jobs is expected to impact local economies in the areas affected, particularly among bar staff and night-time workers. Although the sale of part of the business has saved many positions, analysts indicate that these shutdowns illustrate the vulnerability of hospitality firms operating in a challenging economic climate. The partial collapse of Revolution Bars represents another blow to the UK’s night-time economy as established brands struggle to adapt to shifting consumer behaviour and ongoing financial pressures.
