The business, which mainly trades under the Revolution, Revolucion de Cuba and Peach Pubs brands, said despite a satisfactory performance from Peach Pubs, overall group revenue for Q1 FY26 was £26.3m – down 7.4% in like-for-like (lfl) sales compared to Q1 of FY25.
It added this was primarily due to a 10.5% reduction in lfl sales in the group’s bar business while net debt at 30 September 2025 was £25.3m (30 June 2025: £22.1m).
TRC said: “The board has determined to conduct a strategic review of all of its options, including a formal sales process pursuant to the takeover code in respect of the shares in The Revel Collective or other transaction structures, such as a sale of the company’s trading brands on a piecemeal basis, among others, with a view to deliver the greatest financial return to all stakeholders.”
Government interventions
The group continued: “Since the restructuring plan in respect of Revolution Bars Limited was sanctioned in August 2024, the persistence of challenging economic conditions and the cumulative impact of Government interventions in the last Budget have combined to thwart the business’s ability to improve performance.
“Action taken to reduce costs and increase margins has not been sufficient to mitigate the negative impact of the Autumn Budget changes to the employer NICs threshold, minimum wage and duty on spirits, which came into effect from April and February of this year and are calculated to cost the group in excess of £4m per annum.”
In July, TRC said it was looking forward to FY26 with a degree of optimism as business initiatives showed signs of improvement but since then revenue has been lower than anticipated with the group’s younger customer base continuing to be some of the hardest hit by the cost-of-living crisis.
Additional funding
The group still expects significant sales and profit from the key festive trading period but given the traditionally quieter months for the sector in January and February, the forecasts indicate that, in order to remain within its banking limits, the company would require additional funding at some point in the new calendar year.
The formal sales process will enable the board and its advisers to engage with potentially interested parties, with a view to maximising the outcome for the company’s stakeholders.
Cavendish has been appointed as its independent financial adviser in relation to the formal sales process while FTI Consulting has been appointed as its financial adviser.
TRC added it is not currently in any discussions with any business relating to an acquisition of the issued and to be issued share capital of the company and is now in an ‘offer period’.