More than 3,000 positions threatened as UK pub chain goes under

Major UK Pub Operator Enters Administration Amid Industry Crisis

One of the United Kingdom’s prominent pub groups has entered administration, threatening the jobs of over 3,000 employees just as Rachel Reeves is anticipated to introduce a comprehensive support plan for the struggling pub sector.

The Revel Collective, which manages numerous pubs nationwide under the Peach Pubs banner, has collapsed financially after previously cautioning about the negative consequences of recent tax policies. The company, which also owns Revolution bars and Revolucion de Cuba, has placed 62 venues at risk, including more than 20 Peach Pubs locations.

This development comes after several years of financial instability for Revel, formerly known as Revolution Bar Group, which has accumulated £36 million in losses over the past four years.

Financial pressures intensified over the last year following tax increases implemented by the Chancellor. In addition to higher employer National Insurance contributions and increased business rates, the minimum wage was also raised, further straining the company’s finances.

Revel Collective had previously criticized these rising costs, describing them as regressive and lacking a clear strategy for growth in the hospitality industry.

Mounting concern over the fate of Britain’s pubs has led the Chancellor to prepare an emergency relief package, expected to be announced this week. This comes shortly after The Telegraph began a campaign to safeguard British pubs.

Data from global tax consultancy Ryan indicates that the UK lost an average of one pub per day last year. The situation is expected to worsen, as recent changes to business rates are projected to increase operational costs for many establishments.

Without further intervention, UKHospitality estimates that the average pub’s tax burden could rise by 76% over the next three years. Since Labour assumed office in July 2024, more than 500 pubs have closed, and the trade body warns that another 540 could shut down this year without government assistance.

Beyond tax challenges, Revel Collective has also faced declining late-night sales as Gen Z students reduce their spending on nightlife. In 2024, the company’s shares were temporarily suspended during an urgent effort to secure additional funding. CEO Rob Pitcher noted that students have been particularly impacted by the rising cost of living.

Last year, the group estimated that Labour’s decision to increase employer National Insurance would reduce its annual profits by £4 million. Mr. Pitcher commented that the government’s recent budget changes, especially the lower National Insurance thresholds for employers, would significantly harm the business.

“These measures are regressive and do not provide a clear path for economic growth in hospitality. They also threaten the stability of the job market.”

The company’s shares have once again been suspended, with an announcement stating that it is highly unlikely trading will resume before administrators are appointed. Despite this, the business will continue operating in an effort to retain as much value as possible for all stakeholders.