‘Distracting’ restructuring plan hits the Revel Collective bottom line 

The Revel Collective, formerly Revolution Bars Group, has said it is “well-positioned for future growth” following the successful completion of its £12.5m restructuring plan.

The group operates 43 bars and 22 gastropubs under brands including Peach Pubs and Revolución de Cuba.

Over the past year, the group reported revenue of £149.5m, down 2% from £152.6m, while like-for-like sales were down 4.3%, with the closure of loss-making bars as part of the restructuring plan affecting sales.

For its full-year results ended 20 June 2024, the group reported adjusted earnings before interest, taxes depreciation and amortisation of £13.4m, down from £17m, while losses before tax widened from £22.2m to £36.7m.

Revel Collective chief executive Rob Pitcher said: “Clearly, the multiple processes and the disruption [the plan has] caused to the business has been extremely distracting and unsettling for the entire group team. This distraction has compounded an already difficult trading environment with management focused on getting these processes completed alongside trying to retain of our best talent.”

Despite the uncertainty, Peach Pubs reported strong trading throughout the year, with record sales over Christmas 2023, while Revolución de Cuba reported positive like-for-like sales in the first half of the year, with the “second half impacted by internal distractions”.

Meanwhile, the group’s community space and street food venue Founders & Co in Swansea reported a 19.6% increase in like-for-like sales with the site going “from strength to strength”.

The company said: “There is an excellent opportunity to expand this brand when funding allows.”

Rebrand: From Revolution to Revel

The Revel Collective changed its trading name earlier this month from Revolution Bars Group as part of its post-restructuring repositioning.

The company launched a formal sale process in April alongside a restructuring plan that included raising £12.5m. After talks with Nightcap over a deal failed, it pursued its restructuring plan, which included closing some 25 bars. 

Pitcher said: “Despite the distractions to the bars side of the business, particularly Revolution bars, I am very pleased to have seen strong trade elsewhere in the group.

“Peach Pubs continues to trade very strongly post-acquisition and enjoyed its best ever festive trading this year. The pubs have seen a strong start to FY25, and we see the pubs and Founders & Co as the key areas for future expansion in the group. I am confident that with the distraction of the restructuring plan behind us, we will drive growth across all brands.

“A well-diversified offering through the bars and pubs brands positions us well for the future. In reflection of our more balanced portfolio, we were excited to also announce the renaming of the group to the Revel Collective plc.

“We look to the government as an engine for growth for the UK hospitality industry, with urgent reforms needed to business rates and the apprenticeship levy, as well as recognition of ongoing challenges through minimum wage legislation, which should be supported through reduced VAT for the industry, which is undoubtedly over-taxed.

“Our colleagues have faced continued unprecedented challenges and uncertainty in the last year. The attitude and efforts by both those who have left the group in the last year, as well as our remaining brilliant teams, is unparalleled. I am very excited to see where the new reshaped, resized business can take us.”