Neos Hospitality paid £10m for 20 Revel Collective bars

Neos Hospitality paid £10m for the Revel Collective’s bars business, while its Peach Pubs business was sold to Coral Pub Company for £6.5m, documents have shown.

 

The deal saw the closure of 14 Revolution sites, six Revolución de Cuba sites and one Peach Pub, as well as 591 staff redundancies.

 

The Revel Collective appointed administrators last month after struggling with the “cumulative impact of government interventions in the last Budget”.

 

At the time, its portfolio consisted of 62 sites, which was made up of 40 bars operating under the Revolution, Revolución de Cuba and Founders & Co brands and 22 Peach Pubs.

 

The administrators’ report on Companies House revealed the bars transaction included 20 leasehold premises and the transfer of 876 employees under TUPE regulations, as well as the closure of 20 bars and 548 staff redundancies.

 

Meanwhile, the pubs transaction saved 21 leasehold premises and 690 staff under TUPE, but resulted in the closure of one site and 30 staff redundancies.

 

Thirteen head office staff were also made redundant following the appointment of administrators from FTI Consulting.

 

Secured creditors were owed £28m at the time of appointment. The administrators expected to recover £14.5m in six to nine months, but confirmed no funds will be available for unsecured creditors, who were owed roughly £8m.

 

The first Revolution bar opened in Manchester in 1996 and initially focused on premium vodka. In 2011, the group expanded its offering with the launch of the Revolución de Cuba brand and the acquisition of Peach Pubs in October 2022 for £16.5m, which was partly funded by NatWest.

 

In August 2024, the Revel Collective undertook a court-sanctioned restructuring plan, resulting in the closure of 18 loss-making sites, temporary rent reductions and a write-down of secured debt and new equity investment.  

 

The administrators said: “Notwithstanding these measures and additional cost-cutting initiatives, trading performance across the group has continued to deteriorate.

 

“Economic headwinds from the Autumn 2024 Budget, including increases to employer NIC thresholds, minimum wage and duty on spirits, have added significant cost burdens, further straining liquidity.”