The Revel Collective, previously known as Revolution Bars Group, has reported widened losses due to a significant restructuring programme becoming a ‘distraction’ to its trade. Shares in the company dropped as it disclosed a decline in sales, emphasising the challenging times faced by the late-night hospitality industry.
With a portfolio of 65 sites comprising 43 bars and 22 pubs, the Revel Collective has closed 12 unprofitable bars, including 11 Revolution sites and one Playhouse venue. Plans are underway to close three more Revolution bars as part of a £12.5 million restructuring set to conclude next month.
Luke Johnson, the former Pizza Express chief who recently assumed the role of chairman, expressed commitment to the group by investing £3 million into the business and forgoing a salary to navigate the tough market conditions. Despite recent trading difficulties and uncertainties for staff and customers, Johnson remains optimistic about the group’s future growth prospects.
Total sales for the year up to June dipped by approximately 2% to £149.5 million, attributed to the impact of bar closures. However, the strong performance of the acquired Peach Pubs business partially offset these losses. The company reported a pre-tax loss of £36.7 million, compared to £22.2 million in the previous year.
Rob Pitcher, the group’s CEO, highlighted the robust post-acquisition trading of Peach Pubs and outlined plans for future expansion focusing on the pub sector. He expressed confidence in driving growth across all brands now that the distraction of the restructuring plan is behind them.
As the Revel Collective navigates the challenges and uncertainties of the hospitality industry, stakeholders are hopeful that the restructuring efforts and strategic decisions will pave the way for a sustainable and profitable future.