Revolution Bars Group, which also operates venues under the Revolucion de Cuba and Peach Pubs brands, has announced its intention to appoint administrators. The move comes as the hospitality firm, chaired by Luke Johnson, confirmed it has filed a notice to protect creditors, despite ongoing and "well advanced" discussions regarding a potential sale.
The Revel Collective, as the group is known, anticipates making a further announcement on the sale talks "in the coming days." This development follows the company putting itself up for sale in October last year, a decision prompted by a deepening cash crisis and a significant slump in sales across its venues.
It warned two months later that shareholders were likely to be wiped out as part of any deal.
The firm said on Monday: “Since the transactions being contemplated are not expected to deliver any return to shareholders, the board has resolved to take action to protect creditors.
“Unless circumstances change, and in accordance with statutory requirements, the board intends to appoint administrators within 10 business days.”
“The business will continue to trade and the company will continue to work alongside advisers in order to preserve as much value as possible for all stakeholders as it advances a potential sale of all or parts of the business,” the group added.
The group undertook a major restructuring in 2024, in which it shut 15 unprofitable bars in a bid to turn around its performance.
But the revamp plans faltered and it launched a strategic review last autumn into funding and a sale of all or parts of the business.
It trades from around 62 sites and employs just over 3,000 workers as of the end of June 2024.
Bosses at the firm said in October that revenue has been weaker than expected as younger customers reined in their spending and due to warm weather over the summer.
Revenues dropped by 7.4% to £26.3 million over the three months to September, driven by a 10.5% like-for-like decline in its bars business.
The company also disclosed that its debts grew further, rising to £25.3 million from £22.1 million at the end of June.
