Nearly 600 jobs have vanished overnight as The Revel Collective, the owner of the popular Revolution and Revolucion de Cuba bar chains, entered administration, shuttering 21 venues across the United Kingdom. The abrupt closures—announced on January 26, 2026—have sent shockwaves through the hospitality sector and reignited debate over government policy, rising costs, and the future of Britain’s nightlife.
FTI Consulting, appointed as administrators for the stricken group, confirmed that 591 employees lost their jobs with the closure of 14 Revolution bars, six Revolucion de Cuba bars, and one Peach Pub. The affected Revolution sites include bustling city spots like Manchester (Oxford Road), Leeds, Glasgow (Renfield Street), Cardiff, and Nottingham, while the Peach Pub to close was The Almanack at Kenilworth in Warwickshire. The Revolucion de Cuba bars shutting their doors are spread across Cardiff, Derby, Liverpool, Reading, Harrogate, and Aberdeen, according to Sky News and the BBC.
But it’s not all doom and gloom—at least, not for everyone. FTI announced two rescue deals that will keep 41 venues open and secure the jobs of 1,582 staff. The Revolution and Revolucion de Cuba brands and assets were snapped up by Neos Hospitality Group, an operator known for venues like Barbara’s Bier Haus and Bonnie Rogues. Meanwhile, the remaining Peach Pubs business was acquired by the newly formed Coral Pub Company.
The Revel Collective’s troubles didn’t come out of the blue. The group, previously known as Revolution Bar Group, had already been on shaky ground for years. In 2024, it closed 15 loss-making bars in a bid to steady the ship, but the turnaround failed to materialize. By October 2025, with cash reserves dwindling and debts mounting, the company put itself up for sale, warning that shareholders were likely to see their investments wiped out in any rescue deal. The company’s debt ballooned to £25.3 million by the end of June 2025, up from £22.1 million just months earlier, as reported by The Independent.
What’s behind this dramatic collapse? According to BBC News and Sky News, The Revel Collective pointed to a “continued period of external challenges,” citing both broader economic woes and specific government policies. The group was especially critical of measures introduced by Chancellor Rachel Reeves in Labour’s first Budget after coming to power in 2024. These included an increase in employer national insurance contributions, a hike in the minimum wage, and a rise in duties on spirits—moves the company claimed would cost it over £4 million a year. In a statement, the group lamented, “Since the transactions being contemplated are not expected to deliver any return to shareholders, the board has resolved to take action to protect creditors.”
The closures come amid a wider crisis in the UK’s hospitality sector. According to data from consumer research firm NIQ, 382 hospitality businesses closed in the final quarter of 2025 alone—more than four every day. By the end of the year, the UK counted 98,914 hospitality sites, a stark reminder of the mounting pressures facing pubs, restaurants, and bars. Karl Chessell, director of hospitality operators and food at NIQ, summed up the mood: “Relentless increases in operating costs are taking a severe toll on the sector.”
For The Revel Collective, the pain was compounded by a perfect storm of factors. Rising costs—driven by new minimum pay levels, higher national insurance contributions, and increased duties—were only part of the story. The company also blamed weak trading, with younger customers facing squeezed disposable incomes and, perhaps surprisingly, even the weather. An unusually warm summer, management admitted, kept would-be patrons away from their bars. Sales for the three months to September 2025 fell 7.4% to £26.3 million, with a 10.5% like-for-like slump across the bars division.
As the closures were announced, the government was under mounting pressure to act. Industry groups had long warned that changes to business rates—set to take effect in April—would add nearly £13,000 in costs over three years to the average pub, sparking fears of a wave of further closures. The planned changes, unveiled in the November Budget, had been met with a fierce backlash. According to BBC News, industry leaders cautioned that mass closures were inevitable unless the government rethought its approach.
On January 27, 2026, Chancellor Rachel Reeves responded by announcing a £300 million support package for pubs. The measures include a 15% discount on business rates bills for pubs and music venues in England starting in April, followed by a two-year freeze on rates. The move was welcomed by many in the pub industry but drew criticism from the wider hospitality sector. UK Hospitality, a leading industry group, warned that hotels, restaurants, and other businesses were also at risk and called for the support package to be widened. The focus on pubs, they argued, left other venues facing similar pressures out in the cold.
The Revel Collective’s collapse highlights the fragility of Britain’s hospitality industry and the challenges of balancing business survival with government policy goals. The company’s woes, after all, are not unique. As The Guardian and Sky News have reported, a growing number of high street firms are sounding the alarm about rising taxes, staffing costs, and unpredictable consumer behavior. The sector’s future may hinge on whether policymakers can deliver targeted, effective support—without leaving swathes of the industry behind.
For the nearly 600 workers who lost their jobs, and for the communities losing beloved local bars, the news is devastating. The closures serve as a stark reminder that even iconic brands are not immune to the relentless pressures facing the UK’s hospitality sector. As the dust settles, all eyes will be on how the government’s new relief package plays out—and whether it will be enough to stem the tide of closures threatening Britain’s pubs, bars, and restaurants.