Revolution Bars changes name to Revel Collective

The board of the recently restructured Revolution Bars Group plc has told the Stock Market today (Friday 11 October) that it has changed its name to “The Revel Collective Plc” and appointed two experienced hospitality industry entrepreneurs to its board.

The operator of over 60 premium pubs and bars, trading mainly under the Revolucion de Cuba, Revolution and Peach Pub brands has decided that a change of name would reflect better the make-up of the business.

New share certificates issued will bear the name The Revel Collective Plc.

Rob Pitcher, Chief Executive Officer of the Group, said: “The change of name to The Revel Collective signals a fresh start and better reflects the businesses and brands within the Group today which includes Peach Pubs and Founders & Co. Change is good, and always provides opportunity, especially now from the firmer platform from which the Group is operating. Importantly, for our people it provides a new dawn and stability from the uncertainty which our restructuring caused.  I am excited to be putting the new plans into action and to be beginning a new era in our journey where we can focus on our team and our guests, growing the business and delivering positive value for all stakeholders.”

Gavin George co-founded The Laine Pub Company in 1997 and served as its CEO until last month. The business operates a successful estate of 55 pubs and venues across Brighton, London and Birmingham, and is noted for its content led approach to sales generation. The business also operates a 20,000 HL craft brewery. He remains a Non-Executive Director at Punch Pubs & Co, which acquired Laine in 2018.

Charlie McVeigh spent 20 years as an owner/operator of a series of bar/pub businesses. This culminated in the founding, development and successful sale of The Draft House, a group of 16 craft beer pubs, to BrewDog in 2018. Since then he has served as a Non-Executive Director at restaurant business, The Breakfast Club, and Allsopp’s Taverns, a brewing and pub business.

Luke Johnson, chairman of The Revel Collective, commented: “They join the business at an exciting time. It now benefits from a much firmer financial footing and is in an improved position to deliver shareholder value.

“Both Gavin and Charlie created and led successful licensed bar businesses, and the Board will gain much from their experience. There remains lots of work to do, and we greatly look forward to their contributions.”

In August a deal was struck with existing shareholders for a restructuring plan meaning the company could reduce its property costs and extend its lending facilities.

A new slimmed down business consisting of 27 Revolution Bars, 15 Revolución de Cuba Bars, 22 Peach Pubs and one Founders & Co. site will be capable of adding “a significant annualised EBITDA improvement” of c. £3.8 million.

The Ashton-under-Lyne-based operator  is chaired by hospitality entrepreneur and investor Luke Johnson, following the retirement of Keith Edelman, who has been chairman since February 16, 2015.

The restructure was also facilitated by a £12.5m placing with new shareholders including Johnson, 62, turnaround investor Rebus and three existing shareholders.

However, Dan Coatsworth, investment analyst at AJ Bell said investors still have long memories of how their value was destroyed over the last five years. “Companies often think a simple name change can erase any historical disappointments, believing a new identity is enough to make the market forget the past and focus on the future. But investors have a long memory and they know that nothing changes by hanging a new sign in front of the shop.

“Revolution Bars is the latest company to try this tactic, hoping the switch to ‘The Revel Collective’ will make everything better. That might describe a group of bars and pubs where people are enjoying themselves, but the people owning its shares haven’t had any reason to party for a long time. In reality, it’s a late-night bar operator that has destroyed shareholder value over the past five years and now shares a name with the Russian roulette of chocolate.”