Revel Collective launches strategic review amid weak trading

The Revel Collective has launched a strategic review that could lead to a sale of the company or parts of its business after continued weak trading and rising costs.

The board of the premium bar and gastro pub operator said it was considering “all options”, including a formal sales process under the Takeover Code, or potential sales of individual brands, to deliver the best financial outcome for shareholders and lenders.

The move follows a difficult period for the group, whose main brands include Revolution, Revolucion de Cuba and Peach Pubs. The company said ongoing economic pressures and recent government policy changes had limited its ability to recover performance since the restructuring of Revolution Bars Limited last year.

In a statement, the board said that cost-saving measures and margin improvements had not been enough to offset higher costs from changes to national insurance, the minimum wage and spirits duty introduced earlier this year. These measures are estimated to have added more than £4m in annual costs.

Revel reported group revenue of £26.3m for the first quarter of the 2026 financial year, down 7.4% on a like-for-like basis compared with the same period last year. The decline was mainly due to a 10.5% fall in bar sales, which the company attributed to fragile consumer confidence among younger customers and unusually warm summer weather that reduced high street trade.

In addition, net debt widened to £25.3m as of 30 September, compared with £22.1m at the end of June.

While the group expects stronger trading over the festive season, it warned that quieter months in January and February are likely to create funding pressure. Forecasts indicate that additional capital will be needed early next year to remain within banking limits.

As part of the review, the company has appointed Cavendish as independent financial adviser under Rule 3 of the Takeover Code, and FTI Consulting as financial adviser. The process will allow the board to engage confidentially with potential buyers or investors, under terms approved by the Takeover Panel.

Interested parties will be required to sign non-disclosure and standstill agreements before receiving company information and submitting indicative proposals. The company said it expects the process to conclude in the new year.

Revel added that it is not currently in talks with any potential bidders and that there is no certainty an offer will be made. The company is now considered to be in an “offer period” under the Takeover Code, meaning disclosure requirements apply to those dealing in its shares.