The Revel Collective has announced that it has launched a formal sales process as part of a strategic review.

Following the announcement, shares in the bar and pub operator fell by over 28%.

The group, which owns brands including Revolution, Revolucion de Cuba and Peach Pubs, said that since it launched its restructuring plan in relation to Revolution in August 2024, it has continued to be hit be challenging economic conditions and the cumulative impacts of Government interventions.

As a result, it stated that it has not been able to improve the business’s ability to perform, with group revenue being lower than anticipated as consumer sentiment remained fragile.

Although it is still expecting "significant sales and profit" from the upcoming festive trading period, quieter months in January and February would require it to seek additional funding in the new calendar year.

The Revel Collective has launched a strategic review with advisers to explore funding options for the business to improve. This includes the option for a formal sales process, which would enable the board and its advisers to engage more widely with interested parties.

Investment director at AJ Bell, Russ Mould, said that the firm has been hit by a variety of factors in the past five years. Its share price falling by over 98% in this period.

He concluded: "The Revel Collective has struggled in recent years due to a shift in consumer culture, with less demand for late-night entertainment and more people choosing to cut back on alcohol. At the same time, costs have gone up across the industry, compounding problems for the heavily indebted business."

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