Shares in The Revel Collective plunged 35% to 0.18p in early trading after the pub and bar group announced a strategic review that could lead to a full or partial sale of the business.
The operator of Revolution Bars, Revolución de Cuba and Peach Pubs said the move follows a difficult trading period, with persistent cost pressures and weaker consumer spending weighing on results.
The company said it will consider all options, including the sale of individual brands or the entire group, in an effort to deliver the best outcome for investors and creditors.
Revel said rising labour and alcohol duty costs, introduced in the government’s last Budget, are expected to add more than £4 million a year to its expenses.
Despite efforts to cut costs, first-quarter revenue for the 2026 financial year fell 7.4% to £26.3 million, while net debt rose to £25.3 million.
The group’s younger customers, hit hardest by the cost-of-living squeeze, have continued to rein in spending, and warm summer weather further dampened high street bar sales.