Neos Hospitality acquires Revel Collective bars for £10m

Revel Collective’s administrators from FTI Consulting have announced that Neos Hospitality has acquired the operator’s bars division for £10m, following its collapse last month. 

According to the administrators’ report filed at Companies House, a separate deal also saw the Peach Pubs arm get sold to Coral Pub Company for £6.5m. 

Both transactions resulted in a total 591 staff redundancies, as 14 Revolution bars, six Revolución de Cuba bars and one Peach Pub location shut for good.

The group entered administration following what directors described as the cumulative impact of government interventions and cost pressures from the recent budget.

Before the collapse, the portfolio consisted of 62 sites. This included 40 bars under several brands and 22 Peach Pubs premises.

FTI Consulting’s report confirmed that the acquisition deal with Neos Hospitality included 20 leaseholds, saving exactly 876 jobs under TUPE regulations. 

Meanwhile, the transaction for the Punch Pubs division protected 21 leasehold sites and 690 jobs. However, 13 head office staff were made redundant.

FTI Consulting’s joint administrators anticipate recovering £14.5m in the coming year. This figure is against the £28m that was owed to secured creditors at the time of Revel’s collapse.

Unsecured creditors, who are owed approximately £8m, are unlikely to receive any dividend from the administration process, according to the Companies House report.

Revolution opened its first site in Manchester in 1996. The group later purchased the Peach Pubs business for £16.5m in October 2022.

The collapse follows a court-sanctioned restructuring that took place in August 2024 to cut debts.