(qlmbusinessnews.com . Tue 27th Jan, 2026) London, UK —
UK Hospitality Crisis: Revolucion de Cuba and Peach Pubs Operator Faces Collapse Amid Economic Strain
The UK hospitality sector faces a significant blow as Revel Collective, the operator behind the beloved Revolucion de Cuba and Peach Pubs chains, has announced its move into administration, endangering up to 2,200 jobs across the country.
Revel Collective, which oversees a portfolio of 62 esteemed pubs and bars nationally, initiated a search for a buyer in October following what it described as sustained external pressures. Although talks with a prospective purchaser are reportedly progressing well, the company has made the difficult decision to proceed with administration. As a consequence, its shareholders are poised to receive nothing from the sale.
Despite this setback, the company's popular establishments, including the Revolution bars—endearingly referred to as “Revs”—will continue to operate. However, its trading activities on the AIM, London's alternative investment market, have been temporarily halted.
The company, presided over by Luke Johnson, a former chief of Pizza Express, is expected to nominate administrators within the coming days. In a recent announcement, Revel Collective detailed its intent to enter administration as a strategic move to safeguard its creditors, citing ongoing discussions about sales that would unfortunately result in the total dilution of shareholder value.
The pursuit of a sale was a direct response to “challenging economic conditions,” exacerbated by policy decisions from Chancellor Rachel Reeves in Labour's inaugural budget announcement in 2024. Among these decisions were increments in employer national insurance contributions and an increase in the minimum wage, alongside heightened duties on spirits—a move that is projected to cost Revel Collective in excess of £4 million annually.
Efforts to steer the company back to profitability, including the closure of 15 underperforming venues, have evidently fallen short. This development is indicative of broader struggles within the high street hospitality industry, which has been grappling with the implications of increased taxes and labour costs. Recent statistics reveal a sharp increase in the closure of hospitality venues towards the end of 2025, with an average of more than four establishments closing every day in the final quarter.
The industry is bracing for further challenges with upcoming revisions to business rates calculations set to take effect in April. Though the chancellor is anticipated to introduce mitigatory measures specifically for pubs, there is mounting pressure for a more comprehensive relief package that extends across the entire sector.
As the scenario unfolds, the Treasury has yet to comment on the matter, leaving many in the hospitality industry anxiously awaiting further developments.
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